Invoice Finance – the smart way to control cashflow

Written By Kim Manunui

Kicking off our sector on business finance is Invoice Finance, also known as factoring, while popular overseas it’s a highly underutilised facility in NZ.

Triggered when an invoice is generated through accounting software such as Xero, it pays 80% of your invoice within 24 hours with the last 20% paid when the client pays the bill less a small fee.

Typically cheaper than an overdraft, its working capital in your pocket as you need it using accounts receivable as collateral, no need for any further security.

How it Works

  • Set up an account in your name with the invoice financiers bank, you own all funds in the account the whole way through, set this as your default account for invoices to be paid to

  • Issue the invoice, you get paid 80% within with 24 hours, or more depending on arrangements

  • Once the invoice is paid in full, the remaining 20% goes to you less a small fee

  • Adding a small fee for invoices over 7 days allows you to recover the costs in full

Benefits of Invoice Finance

  • You cease being a bank for your clients

  • Cashflow when you need it – bridging the gap between work done and getting paid

  • No additional collateral – only the invoice required as security

  • Supports growth - the facility grows with your business providing funding as you grow

Who it’s for – a great option for business’s that -

  • Have to wait for long payment

  • Need to maintain healthy income to cover expenses

  • Are looking for funding without using personal assets as security

  • Are in manufacturing, wholesale, services, construction, transport, contracting and more

What if clients don’t pay –

You choose whether you manage client invoices or have the invoice finance company take on the risk and follow it up professionally, additional fee’s apply. Due diligence is carried out on regular clients to minimise the risk with bad debt risk insurance available.

For more on the above click on the link below

Contact us
Kim Manunui

Hi, I’m Kim and I work with a great team to help individuals, as well as small and not so small businesses get their message, product and services to the world using digital media and creating wonderful websites that don’t cost the earth.

I was born in Canada, and grew up around Vancouver and the mountains of British Columbia. My love of pristine environments led me to New Zealand and eventually to the mountains, lakes and rivers of the central North Island which is home. My family’s heritage is here, and it’s from here that Korio traverses the planet.

The digital world is never static and neither are we.

And I say ‘we’ because I work with an awesome group of talented people who I gather together as required to complete a project.  Whatever your business, not-for-profit or individual needs are we gather the best team to get the job done.

Collaboratively we are creative, share sustainable values and work hard for great outcomes because that’s the buzz of satisfaction that drives us.

If you have an audience and market to reach, we can make that happen. Creative design, words that work and smart behind the scenes stuff that cuts through the online noise. We’ll design your website and then build it. We’ll manage the content as well as all your hosting needs. We can handle your online advertising so you get noticed,
and we’ll manage your social media presence so you get the clicks, likes and engagement to grow your business. All within the budget you set, because none of this needs to cost the earth.  And the job doesn’t stop when your website goes live. We are your virtual business partner.

https://www.korio.co.nz
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Insurance and moral risk