Get your invoices sorted before Christmas: How a business loan can help

Advertiser disclosure

By Katherine O'Chee ·

As 2020 comes to a close, the time is ripe for businesses to tie up loose ends, including any unpaid invoices, and to get cashflow ready for the holiday season.

There might also be a resurgence in sales to prepare for, as research from Westpac and the Melbourne Institute shows consumer sentiment soared to a seven-year high this month. 

With this in mind, you may want to have extra funds ready in your back pocket just in case you need to buy more stock or hire more employees. 

“In these turbulent economic conditions, the ability to anticipate demand can be difficult - even at Xmas, which is traditionally a busier season for retail and other upstream industries,” business lender Octet’s head of marketing, Duncan Khoury says. 

“Invoice finance (otherwise known as debtor finance) can be useful by giving you quick, painless access to the funds tied up in your unpaid invoices, which are often business’ biggest untapped asset.”

So if your slow-paying customers still haven’t responded to your nudge on their shoulders, invoice finance could be a great alternative solution. 

This type of business loan is secured against your outstanding business invoices, granting you up to 85% of your invoice amount upfront (you receive the rest, minus any fees or charges, once your customer pays). That way, you won’t be left high and dry if, say, you’re a wholesaler and new orders suddenly come in from a whole bunch of retailers. 

Approval speeds are also quick with online lenders like Octet, helping you stay ahead of the end-of-year rush. You may only need to wait 24-48 hours before you can start withdrawing funds from your invoice finance facility.

Ready to compare your invoice finance options? We’ve made it super easy for you by rounding up a few eye-catching deals offering fast and flexible funding to Australian businesses.

HOT INVOICE FINANCE DEALS

Octet invoice finance
  • Two-minute application
  • Funding from 24 hours (once approved)
  • Borrow from $100k to $10 million

Securing pre-Christmas finance with Octet will feel like a breeze, with applications that take just minutes and 85% of your invoices paid to you as little as 24 hours after approval. Octet’s invoice finance offer also comes with interest rates from 6% p.a. and borrowing amounts from $100k up to $10 million, so there’s plenty of room to tailor the loan to your specific business needs.

Timelio invoice finance
  • Fast application and approval
  • 90% of overseas invoices paid upfront
  • Loans between $10,000 and $100 million

The business world moves fast, especially in the lead up to Christmas. That’s why Timelio has kept things simple with a 10 minute application and approval in 24 hours. Timelio also hits the mark with flexibility, offering businesses personalised rates and facilities that can hold funds between $10,000 and $100 million. Businesses with customers abroad won’t be left out either, as Timelio accepts international invoices.

ScotPac invoice finance
  • Apply in ten minutes
  • Same-day approval
  • Borrow from $10,000 to $150 million

After a cashflow boost before the holiday season hits? ScotPac’s invoice finance may be just what you’re after - the online application process takes just 10 minutes out of your day and you could be approved on the same day and receive up to 95% of your approved value (less fees) a day later. ScotPac offers funding from $10,000 to $150 million to cater to businesses of all sizes, with rates from 1.25% per fortnight and zero ongoing fees.

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

Katherine O'Chee
Money writer

Katherine O’Chee is Mozo’s international money transfer and forex expert and business banking writer. She keeps Mozo’s readers on top of the latest news and writes in-depth features to inform and help Australians make smarter financial decisions. Her work has been published in major media outlets including Sydney Morning Herald, SBS News and Bangkok Post. She has a Bachelor of Arts (Media and Communications) from the University of Sydney.