Taking on new contracts should be an exciting prospect for small and medium sized businesses in New Zealand. However, many businesses struggle to scale due to the cash flow caused from the delay in new customers paying invoices.
Fortunately, Invoice Finance allows businesses to embrace market growth and expansion opportunities without having to worry about insufficient access to working capital.
Invoice Finance NZ from ScotPac helps businesses turn unpaid invoices into immediate cash to help you scale fast.
What Is Invoice Finance?
Invoice Finance works in a similar way to a line of credit. It is a financial solution for businesses that is secured against unpaid but issued invoices. In other words, it allows your business to access up to 85% of the value of the invoices owed to you in advance.
Instead of having to wait 30 or 60 days for the payment term to lapse, you can access the working capital you need when you need it.
When you work with our lending specialists here at ScotPac New Zealand, you can choose a self-managed solution where you are able to retain full control over how much funding you access and when and our end-to-end Invoice Finance services, where we provide receivables and collection support, so you don’t have to worry.
- Avoid taking on extra debt
- Receive the balance of funds when your clients pay
- Scale your facility alongside your revenue growth
- Use the working capital to meet payroll, fund new contracts, order new stock and more
How does Invoice Finance help your business grow?
Immediate cash flow
When a small business takes on new contracts, they are often subject to delays on receiving payments due to standard terms. This can cause a significant gap in cash flow.
With Invoice Finance, your business receives an immediate cash flow boost to scale your business sustainably and responsibly.
Flexible access
Invoice Finance allows small businesses to maintain full control of their cash flow. You can choose which invoices to finance and when to do it through our self-managed online portal.
For scaling businesses, this means that when you need extra working capital to bridge gaps in cash flow, you have all the access you need, without taking on financial debt during periods in which you don’t.
No fixed repayments
Once your clients pay their invoices, you receive the balance of funding, less facility fees.
Unlike traditional bank loans or even standard lines of credit, there are no fixed repayments and incurred interest. You can align your Invoice Facility with your standard client pay cycles for an easy to maintain, long term and sustainable solution
Can Invoice Finance help secure new contracts?
By being able to access funds instantly, even SMEs can take on and fulfil larger contracts and projects.
Smaller businesses may not have the cash flow or working capital reserve to maintain operations without waiting out the period of time it takes clients to settle invoices. By accessing an advance on the money owed to your business, you can fund upfront costs like new stock, inventory or materials without being subject to 30 or 60-day delays waiting for clients to pay.
- Maintain generous payment terms
- Avoid gaps in cash flow
- Ensure ongoing operations and fund growth opportunities
Does Invoice Finance help with seasonal demand?
Yes. Invoice Finance can also help businesses operating in seasonal industries or subject to periodic peaks and troughs in revenue to smooth out their cash flow management.
By unlocking the otherwise inaccessible working capital in unpaid invoices, businesses can take advantage of early and bulk order discounts on stock, expand their labour resources, or take on market opportunities without being subject to the limitations of seasonal variability in cash flow.
How Does ScotPac Invoice Finance Differ from Traditional Business Solutions in NZ
How Does ScotPac Invoice Finance Differ from Traditional Business Solutions
Speed
Access funds within 24 hours once approved.
Subject to weeks of eligibility checking and application documentation.
Security
Funding is secured by unpaid invoices only.
Collateral in the form of personal property or other assets may be required.
Repayment
Facility fees are taken once invoices are paid.
Fixed monthly payments.
Scalability
Can be scaled alongside sales and revenue growth.
Requires re-financing and new application
Cost
Based on use of the facility.
Ongoing fees and interest
Contact ScotPac NZ today to find out more about scaling your business with Invoice Finance
Why choose ScotPac?
- More than 9,300 businesses supported
- $26.3 billion in invoices funded annually
- Over 35 years of experience
At ScotPac, we partner with you to fuel your business’s success!
Whether you’re looking to scale or have new contracts you want to take on and need to fund, make sure to speak to a lending specialist in our team or apply for Invoice Finance with ScotPac NZ.
