Frequently Asked Questions

Who is AddCash Finance Pty Ltd? | Back
AddCash Finance was established in 2003 and is a commercial finance company specialising in invoice financing for small businesses. We offer our facilities Australia wide to the smaller businesses that are often ignored by banks and most other financiers, but we also provide facilities to large businesses.

What is AddCash Invoice Financing? | Back
AddCash Invoice Financing is a facility which accelerates the cashflow of your business when you have money constantly owed to you by your customers. This is commonly the case where you have made the sale and issued the invoice but your customer won’t pay you for 30 to 60 days. This causes cashflow stress, restricting your ability to increase sales. AddCash Invoice Financing unlocks the cash tied up in these debts by turning credit sales into cash sales.

Why do businesses use cashflow financing? | Back
Because banks and finance companies typically lend only against real estate and similar assets, cashflow finance is hard to get, and for small businesses it’s almost impossible. Credit cards are often used to get small amounts of cash quickly and some small business people even resort to taking cash advances from the new pay day lenders. Another common way that small businesses try to solve this cashflow problem is by offering their customers a prompt payment discount if they pay quickly, but this rarely works and results in more expense for the business. AddCash Invoice Financing is a genuine alternative which provides cashflow certainty. You are guaranteed to receive the funds for your invoices and you only pay charges to us for those invoices you submit to us for funding.

Who is cashflow financing suitable for? | Back
Invoice Financing is suitable for manufacturers, wholesalers, importers and many service industries, although usually not for building and contracting industries. AddCash Invoice Financing is specifically for small businesses which are often rejected by banks as being too small. We can help you if you are a growing business with modest sales, or a larger, more established business with strong sales and new opportunities. AddCash is also willing to help businesses that are just starting out provided that the owners are well experienced and the business is otherwise well resourced.

How do I qualify? | Back
If you sell goods or services on normal credit terms to other creditworthy businesses (not consumers) and your invoices are for fully delivered goods or fully provided services (not progress claims, stage claims, milestone payments etc.), then you meet the basic criteria. You will also need a clear credit history for the business and its principals. The age of your business, its trading results and your asset position are not key issues in approving a facility for you, as we are more interested in your future rather than your past.

Is it OK if I’m not a company? | Back
Yes, we can provide an Invoice Financing facility to you as a sole trader or partnership.

What security is required? | Back
We usually provide the facility just against the assets of your business only so you do not have to give us a mortgage over your real estate. You sign an agreement which sets out the terms and conditions of the facility. The agreement gives you an initial 12 month term which you can renew but you can terminate the agreement at any time without penalty. If you are a company, we will need a charge over your company to be registered at ASIC, plus Directors’ guarantees.

How does cashflow financing work? | Back
You send copies of your selected customers’ invoices to AddCash via Online Access, which is our secure 24/7 internet based data transfer system. You submit funding requests using Online Access, telling us how much you wish to draw. We initially fund up to 70% of the value of approved invoices that you have sent us and the other 30% less costs when the customer pays the invoice. Your selected customers send their EFT payments to an AddCash trust account and for customers who pay by cheque, you just on forward the cheques for banking to AddCash using our bar coded reply paid envelopes, or we may ask that cheques be sent direct to our post office box. We debit our charges to your account and you can view your account at any time at Online Access, to see amounts funded to you, customer payments received (with remittance details) and our charges.

Do I have to finance all of my invoices? | Back
No, it’s up to you. For facility agreement purposes you sell us all of your invoices and this allows you to select the invoices that you actually want to obtain funds against from time to time. You can finance one invoice at a time, a series of invoices or all of your invoices and you only pay charges on the invoices you finance with us. All we ask is that you finance all of the invoices owed to you by any one customer so that we both avoid the administrative headache of splitting up payments and reconciling customers’ accounts.

What happens if a customer pays later than expected? | Back
We will usually continue to fund an invoice up to 60 days from end of invoicing month if we’re confident that the customer will pay. After that, you either repay us the amount of money we initially gave you or you can substitute some other invoices of equal value.

Is this facility suitable for a one-off transaction, occasional use or just to have in case of future need? | Back
No, it’s designed for ongoing use as we are unable to maintain unused facility limits. Your facility is activated by an initial financing transaction within 5 days of approval or the approval lapses. Thereafter, if you don’t regularly use the facility, it will be cancelled. However, if you have seasonal or other irregular but genuinely ongoing needs, we can make special arrangements for you.

Is there a minimum usage requirement? | Back
No, all we ask is that you make reasonable and regular ongoing use of the facility to keep it active and available for your use. You can terminate the agreement at any time.

What does it cost to establish a facility? | Back
There is a one-time-only cost to establish the facility, which covers our costs for searches, documents, stamp duty and registration fees. These costs vary with your business structure and required facility limit, and start from just $350. We debit the establishment cost to your account, so you don’t have to pay this upfront.

What is the ongoing cost? | Back
The cost is a discount fee per week of the value of the unpaid invoices, determined by the size and nature of your credit sales. Typically it costs about what it would cost to offer your customer a prompt payment discount to get them to pay quickly. And of course the quicker you get your customers to pay their invoices, the lower your total ongoing cost.

Are there any other costs? | Back
There may be a small invoice processing charge, but there are usually no other costs, unless we incur any disbursement costs on your behalf.

What’s the application and approval process? | Back
AddCash makes it as simple as possible. You can apply online by answering the application questions and if you qualify, an initial online approval will be given immediately and we will contact you to obtain the documents we need to complete our credit checks and confirm your approval. Alternatively, if you prefer, we can talk by phone or we will call on you for an initial discussion of the facility, before proceeding to an application. The application and approval process is free of charge or obligation. If you then formally accept the approval, we provide the security documents to you for your signature. When we have your signed documents back, we will establish the facility for you and you then decide which customers and invoices you wish to finance. Our procedures are simple and we will show you how easy it is to submit invoices and access funds using our internet based Online Access system. The facility is then settled by your first financing of invoices, which provides initial funds to you and pays the establishment costs.