If a business is looking to access invoice financing, they will need to be creditworthy. To be creditworthy, a business needs to demonstrate that they have the ability to pay back the funds borrowed. This means having accounts receivable and meeting strict criteria when it comes to their cash flow. Get in touch with the factoring company australia today.
Creditworthy Clients
As part of the qualification process, both you and your clients must be creditworthy.
- Your company’s creditworthiness is determined by its financial health, history with invoice financing providers, and other factors.
- The creditworthiness of each client is determined by its financial health and history with invoice financing providers.
- Your invoices must also be acceptable to the provider.
Accounts Receivable
Your clients are the backbone of your business, and the more invoices you have from them, the better. It’s important to have a steady stream of clients so that when one pays their invoice, it can be paid off immediately by a factoring company australia.
Invoice Verification
All invoices must be verified before they are sent to a factoring company for funding. The process involves reviewing each item on an invoice and confirming whether or not it has been paid or not by either checking with the client or looking at your bank statement.
Bank Statement Verification
A factoring company will need to see proof that your business has money in its account; this can be done using bank statements or other financial documents such as sales tax returns.
A Business Bank Account
The first thing you need is a business bank account. You’ll want to make sure that you can access it online and make payments and transfers from the comfort of your own home, so it’s important that the bank is willing to provide this service. If not, you may have difficulty in qualifying for invoice factoring.
A Completed Factoring Application
The application process is a simple, straightforward process. You can complete it online or send in a hard copy to one of our representatives. The only thing you have to have ready is your business information:
- Business name
- Business address
- Ownership structure and specific role(s) within the company (if applicable)
- Nature of industry (i.e., retail, manufacturing)
Conclusion
In short, invoice factoring can be an excellent way to leverage your business’s creditworthiness, and it should not be overlooked as a financing option. If you are seeking factoring company australia for your business, consider looking into invoice factoring.
This article has discussed some of the pros and cons of factoring, but we encourage you to do some more research on your own before making any final decisions.
