Will My Clients Know I’m Using Invoice Finance?

Video Transcript

Yes, your customers will know that you’re receiving funding against the invoices you’ve issued to them as they will be asked to verify the invoices. However, invoice finance has become such an accepted part of commercial business these days that it won’t be unusual to them. With thousands of Australian businesses turning to invoice financing each year, which is now driving about $40 billion in annual revenue in 2018, your debtors will more than likely have encountered suppliers using invoice finance before, or perhaps they’re even using it themselves. Now remember, while offering credit terms, your customers are using your business as a bank to fund their supply chain for the agreed credit period, which is why savvy business owners are turning to invoice finance to take back control of their own cash flow. Some financiers do offer what is called undisclosed or confidential invoice financing, whereby the debtors won’t specifically know about the funding solution in place. But in order to qualify for that type of facility, your business would need to be well established for over five years or more, turning over typically greater than $10 million in annual revenue, have no other debt and have a strong balance sheet.

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