Servicing Australia’s world-renowned mining sector has proven to be good business, even through the ups and downs of the commodities cycle. With demand varying and large orders requiring investment in people and equipment to fulfil, however, suitable funding is essential.
Specifically, mining services companies face a substantial wait between paying their staff and suppliers and getting paid themselves. This creates a problem with cash flow management that can stifle growth and lead to missed opportunities.
Invoice finance is the ideal solution to this problem, allowing mining services providers to get their money as soon as they issue an invoice, instead of waiting months for it to be paid. Not only does this significantly improve their cash flow situation, it can actually be used as funding to invest in the business.
How Invoice Finance Works
Invoice finance – sometimes known as invoice discounting, cash flow finance or debtor finance – is a form of business funding that allows you to unlock the cash that is stuck in your accounts receivable. It works because businesses that sell to other businesses – like mining service providers – are usually obliged to offer payment terms of 30, 60 or 90 days from the point when they issue an invoice. This means that as much as a quarter of their annual revenues can be outstanding at any one time. Accessing this cash immediately provides a significant funding boost.
With invoice discounting, such as that offered by OptiPay, you can get 80% of any invoice paid within hours. OptiPay is automatically re-paid when the customer settles the invoice, takes a small pre-arranged fee, and sends you the rest of your money.
This form of business funding isn’t debt: it doesn’t sit on your balance sheet and it doesn’t require security or a credit record – just good customers who you invoice with payment terms. It serves both to raise money for growth and to improve cash flow management.
Flexible Invoice Discounting
Cash flow finance isn’t new – it’s been around since at least the Middle Ages, when it was popular among merchants. But since it has been combined with Fintech, it has become extremely easy to arrange and use in ways that are tailored to individual business needs.
Once you have opened an account with us, you can choose which invoices you want to upload for funding, providing you with a surefire way to raise funds as and when you need them. This makes it extremely competitive compared to other forms of business finance, such as business loans, that tie you in to years’ of interest on funds you may or may not need.
OptiPay’s flexible invoice discounting service puts companies in control of their cash flow.
Open an Invoice Finance Account Today
OptiPay is a leading smart finance company and can provide your mining services company with the cash it needs to seize opportunities, fulfil its contracts and grow. For more information call us on 1300 694 686.
Need Business Funding?
Note: OptiPay funding solutions are only suitable for businesses with annual revenues of $1m+ per annum.
Related Links
- Invoice Finance
- Invoice Discounting
- Invoice Factoring
- Invoice Finance vs Factoring
- Benefits of Invoice Finance
- Invoice Finance for Trade Contractors
- Pros & Cons of Invoice Discounting
- Invoice Finance for Transport Companies
- Invoice Finance for Commercial Cleaning Companies
- Invoice Finance for Small Businesses
- Funding Business Purchases Through Invoice Finance
- What is Invoice Finance?
- What is Invoice Discounting?
- How to Use Invoice Finance to Fund Your Business
- Invoice Finance vs Business Loans
- Many More SMEs Could Be Using Invoice Finance
- Invoice Discounting for Beginners
- How to Choose an Invoice Finance Provider
- Delayed Payments Impacting Your Cash Flow?
- Unsecured Business Loans
- Business Loans
- Business Finance
Here’s why Our Clients choose OptiPay
This is Paul, he is one of the directors of UVS, a labour-hire provider to the construction industry. Here’s what he has to say about how OptiPay was able to help his business grow and succeed. Contact an OptiPay expert today to see how we can help you.
We’ve Funded Over a Billion Dollars to Australian Businesses
OptiPay Platform Integrations
