Closing the cash gap: Busting the myths about invoice finance
Still thinking about invoice finance the old way? Let’s change that.
Mention invoice finance and some very old assumptions quickly enter the conversation: “My customers will know.” “Someone else will collect my invoices.” “I’ll have to change my bank account.” “Isn’t it only for businesses in trouble?”
Those perceptions may have been shaped by traditional factoring models. But the market has moved. And so has the technology.
Myth 1: My customers will be contacted
Not routinely. CreditLine by FinanZor is designed as a silent facility. Technology and cloud accounting data enable FinanZor to assess and verify receivables without routinely inserting itself into the customer’s relationship. They are your customers, and they should stay that way.
Myth 2: I’ll lose control of collections
no. With CreditLine, the business continues managing its own invoicing and collections. FinanZor doesn’t take over the customer relationship.
Myth 3: I’ll need to change my bank account
No. CreditLine sits alongside existing banking arrangements. There is no requirement for a segmented collection account or to instruct customers to start paying invoices into a new account simply because a working-capital facility has been introduced.
Myth 4: Invoice finance is only for struggling businesses
Working-capital funding can be a growth tool. A large new contract may require people, stock, materials or mobilisation costs well before the customer pays. The stronger the growth, the greater the working-capital requirement can become.
Myth 5: It only works with Australian customers
CreditLine can support eligible domestic and international debtors, with receivables backed by Atradius Australia credit insurance.
Myth 6: I’ll have to apply every time I need money
CreditLine is revolving. Once approved, eligible businesses can draw when working capital is needed and repay as invoices are paid, rather than continually applying for new funding. Facilities range from $250,000 to $5 million, with access to funds generally available within 24–48 hours.
Maybe it’s time we stopped thinking about “invoice finance” and started thinking about working-capital solutions
The product name isn’t the important part. The problem you’re solving is. If a good Australian business has completed the work, issued the invoice and is waiting to be paid, there is capital sitting inside that business. The question is whether that capital should sit still. At FinanZor, we don’t think it should.