Invoice financing is a revolving line of credit against unpaid invoices and the most recent increases in applying for it were noted after the Australian Taxation Office announced it was resuming tax debt collections.
The amount of debt owing to the ATO has climbed 14 per cent from the same time last year to over $40 billion.
Angus Sedgwick, chief executive of OptiPay, said the most interest in invoice financing is coming from manufacturing and wholesale trade industries, with invoices in these industries still taking 15-20 days past the due date to be paid.
“Many companies with annual revenue between $2 million and $50 million and over are trying to fix their cashflow quickly as the ATO has begun contacting businesses individually and with some being issued with demands for payment to restart their overdue tax obligations after exercising leniency during the pandemic,” Mr Sedgwick said.
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