Servicing Australia’s world-renowned mining sector has proven to be good business, even through the ups and downs of the commodities cycle. With demand varying and large orders requiring investment in people and equipment to fulfil, however, suitable funding is essential.
Specifically, mining services companies face a substantial wait between paying their staff and suppliers and getting paid themselves. This creates a problem with cash flow management that can stifle growth and lead to missed opportunities.
Invoice finance is the ideal solution to this problem, allowing mining services providers to get their money as soon as they issue an invoice, instead of waiting months for it to be paid. Not only does this significantly improve their cash flow situation, it can actually be used as funding to invest in the business.
How Invoice Finance Works
Invoice finance – sometimes known as invoice discounting, cash flow finance or debtor finance – is a form of business funding that allows you to unlock the cash that is stuck in your accounts receivable. It works because businesses that sell to other businesses – like mining service providers – are usually obliged to offer payment terms of 30, 60 or 90 days from the point when they issue an invoice. This means that as much as a quarter of their annual revenues can be outstanding at any one time. Accessing this cash immediately provides a significant funding boost.
With invoice discounting, such as that offered by TIM, you can get 80% of any invoice paid within hours. TIM is automatically re-paid when the customer settles the invoice, takes a small pre-arranged fee, and sends you the rest of your money.
This form of business funding isn’t debt: it doesn’t sit on your balance sheet and it doesn’t require security or a credit record – just good customers who you invoice with payment terms. It serves both to raise money for growth and to improve cash flow management.
Flexible Invoice Discounting
Cash flow finance isn’t new – it’s been around since at least the Middle Ages, when it was popular among merchants. But since it has been combined with Fintech, it has become extremely easy to arrange and use in ways that are tailored to individual business needs.
Once you have opened an account with us, you can choose which invoices you want to upload for funding, providing you with a surefire way to raise funds as and when you need them. This makes it extremely competitive compared to other forms of business finance, such as business loans, that tie you in to years’ of interest on funds you may or may not need.
TIM’s flexible invoice discounting service puts companies in control of their cash flow.
Open an Invoice Finance Account Today
TIM Finance is a leading smart finance company and can provide your mining services company with the cash it needs to seize opportunities, fulfil its contracts and grow. For more information call us on 1300 694 686.
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.
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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.