What is Invoice Factoring?
Invoice Factoring is a type of debtor/invoice finance in which a business sells its accounts receivables ledger (invoices) to a third party (in this instance TIM) in return for receiving up to 90% of the invoice values in cash, with the balance to be received when your debtor pays (as per their normal 30 to 60+ days trading terms).
Invoice Factoring is commonly referred to as accounts receivable factoring, invoice factoring, invoice finance, debtor finance and even accounts receivable financing or invoice discounting.
The True Difference Between
Factoring and Invoice Discounting
Factoring and Invoice Discounting are both financial services that can release the funds tied up in your unpaid invoices.
Strictly speaking, the difference between Factoring and Invoice Discounting lies in who takes control of your account receivables ledger and responsibility for collecting the monies from your debtors.
With Factoring, the provider of the upfront funds takes the role of managing your
account receivables ledger, credit control and chasing customers for settlement of their invoices.
TIM does not do this.
With Invoice Discounting, provided by TIM your business retains full control of its own debtors ledger and you collect payment in the usual way.
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Benefits of Factoring
and Invoice Discounting
Releasing up to 90% of the value of your outstanding invoices within 24 hours of approval
Funding can be secured without requiring other assets
Cash is freed up to overcome cash flow problems or grow the business
The level of funding available increases with your turnover
By receiving up to 90% of your cash, you are able to pay supplier
invoices promptly which increases your power to negotiate discounts
In regards to Invoice Discounting, you attain the advantage of managing your own credit control and debt collection. Hence you are in complete control.
Likewise, Factoring and Invoice Discounting are useful options for:
For small and medium size businesses that need working capital to keep growing
Businesses with annual revenue of at least $1.0 million and who have at least 4 regular paying customers
For businesses that are coming out of a tough trading environment that need cash today to bridge the gap between invoicing customers and getting paid
Seasonal cash flow fluctuations
Who uses Factoring and Invoice Discounting?
Factoring and Invoice Discounting are particularly suited to businesses in areas such as:
- Transport & Distribution
- Cleaning, Maintenance and Landscaping companies
- Numerous Other Industries
TIM Funding Process
5 simple steps to secure funding
Quick same-day setup
- No application or set-up fees
- No long lock-in contracts
- No property security required
Select your invoices and upload
- Choose only the invoices you want funded
- No fees as you add more debtors
- TIM checks the credit rating of your debtors and verifies each invoice
- Open and honest appraisals
Access up to 90% of your cash up front
- Get up to 90% of your invoices paid to you without any hold backs or fees
- Get your money within just 24 hours of approval
Access balance of cash
- The more you cash-flow with TIM, the lower the discount fee can become
- The balance due on your invoices are paid to you when your client pays their invoice, less a pre-agreed discount rate
- TIM is paid when you are paid and not before
Here’s why the experts choose TIM
This is Loren. She doesn’t work for us, but we’ve done a lot of business together. Loren is one of the many trusted business consultants who consistently recommend TIM to their clients. Watch the video below to find out why.
We’ve funded well over half a bilions dollars
Discover why so many Australian businesses are choosing TIM.
”Our Customers Have Rated Us “Great”
At TIM, our invoice discounting solutions allow your business to get an advance against your accounts receivables ledger – either on a selective or whole ledger basis.
It’s quick and easy to access funds, which means you can get the cash flow you need to get on with business.
With TIM you get:
Fast funding: quick funding decisions and set-up
Hassle free experience: easy to use
Help in real-time: personal customer support
Straightforward costs: no upfront costs and no hidden fees
Make cash flow management easy by aligning your
accounting software to TIM.ex.
TIM’s accounting interface is quick to activate and helps to manage
money and pay suppliers.
Get Tomorrow’s Cash flow Today
Helping you find smarter ways to use your own cash and avoid the pitfalls of borrowing funds. TIM Finance is always ready to help in a fairer, more flexible and far more affordable manner than a traditional business loan. Contact a TIM expert today.
TIM Finance offers several different funding solutions (Services), one or more of which has a no-fee, no interest and no long lock in contract period, called the Fully Flexible funding option. Conditions, fees and charges apply to some of the Services provided, which may change or we may introduce new ones in the future. Full details for all funding options (Services) including any fees and charges which may apply, is available on request. Lending criteria apply to approval of credit products. This information does not take your personal objectives, circumstances or needs into account. Consider it’s appropriateness to these factors before acting on it. Read the funding agreements provided, for your selected product/service, including all the Terms and Conditions contained in agreements provided, before proceeding. *T&Cs: Minimum 12 month invoice funding contract with TIM Finance. Direct clients only, offer doesn’t apply to broker introduced clients. All standard credit terms and conditions apply including credit assessment. Not applicable to existing clients.