1. What size does an invoice need to be?
An invoice needs to be $5,000 (including GST) or greater with no limit to the size of the invoice.
If your individual invoices are less than $5,000, you have the option to “batch” up your invoices to reach $5,000 of requested funding.
2. Will my customers think my business is in trouble?
Many business owners recognise that working capital is crucial for every business and that invoice finance is simply allows businesses to grab opportunities which might not otherwise be available when working capital is tight.
Invoice finance has become so well established that it would not be uncommon if your customers already deal with other clients using OptiPay or other Debtor Finance providers. They may even use it themselves.
3. Who uses finance in Australia?
The main areas of industry that utilise factoring and invoice discounting are:
- Manufacturing
- Recruitment
- Construction
- Printers
- Wholesalers
- Couriers
Invoice financing can also prove beneficial for:
Business start-ups – providing flexible finance to get new ventures off the ground.
Growing businesses – making your cash work harder for you.
Struggling businesses – bridging the gap between invoicing and receiving payment.
4. Does it matter if I only have one main customer?
Many growing Australian businesses have just one or two customers, which is not a problem when funding with OptiPay as we do not enforce debtor exposure limits on our clients. . We’ll provide funds to you as long as your customers have a good record of payment and are financially sound.
5. Should my business use Invoice Finance or Factoring?
There are clear differences between factoring and invoice financing.
Factoring is a more of a locked-in service for companies that don’t have an in-house credit control function. It involves outsourcing all of your credit control processes to the factoring provider, allowing them to chase down outstanding payments. Furthermore, it requires your entire debtor book to be factored with the factoring provider.
Some business owners may be reluctant to go down this route, as it means relinquishing control on a key part of your company’s day-to-day operations and they may not need or want to fund every invoice to every debtor.
Invoice Finance is a better option for many Australian SMEs because it only assesses the suitability of the particular invoices you want to sell – not an entire debtor book.
There are usually less service fees with invoice financing, and unlike factoring, there are no long-term contracts.
MORE: Case study: Invoice finance for trade contractors
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Free Expert Advice
If invoice finance is a solution you’re considering for your business, use OptiPay’s independent expertise and find out more about how it could benefit you and your business.
Help us to help you determine the best way forward. We specialise with supporting small and medium businesses.
Who is OptiPay?
OptiPay, one of Australia’s leading business finance providers, has been dedicated to helping small business owners solve cash flow challenges for over a decade and has provided $1.5 billion in business funding to more than 500 Australian businesses. OptiPay specialises in modern financing solutions such as invoice factoring, invoice finance, debtor finance, and lines of credit. OptiPay’s mission is to support business growth providing liquidity in as little as 24 hours, ensuring they have access to tomorrow’s cash flow today. This rapid access to funds helps businesses maintain smooth operations and seize growth opportunities without the stress of cash flow constraints. At OptiPay, we believe that healthy cash flow is the lifeblood of any successful business. Our commitment to helping businesses overcome financial hurdles and achieve their growth ambitions has solidified our reputation as a trusted partner in the business finance sector. Whether you are looking to stabilise your cash flow, expand your operations, or navigate financial challenges, OptiPay is here to support your journey with innovative and efficient financing solutions.
