Answer: AddCash Finance was established in 2003 and is an Australian owned commercial finance company specialising in invoice finance for small to medium-sized businesses (SMEs). We offer facilities Australia wide to businesses that are often ignored by banks and other financiers.
Answer: AddCash Invoice Financing is a facility which accelerates the cash flow 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 7, 30 or even 60 days. This causes cash flow 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.
Answer: Banks and finance companies typically lend only against real estate and similar assets, cash flow finance is therefore hard to get, and for SMEs it’s almost impossible. Credit cards and personal loans are often used by businesses who require fast business finance. Another way that SMEs try to solve this cash flow 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 for no benefit. AddCash Invoice Financing is a genuine alternative which provides cash flow certainty. You are guaranteed to receive the funds for your invoices and you only pay charges on those invoices you draw funds against.
Answer: Finance factoring is suitable for manufacturers, wholesalers, importers and many service industries. 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 the owners are well experienced and the business is otherwise well resourced.
Answer: If you sell goods or services on normal credit terms to other creditworthy businesses and your invoices are for fully delivered goods or fully provided services then you meet the basic criteria. The age of your business, its trading results and your asset position are less important when approving a facility for you, as we are more interested in your future rather than you past.
Answer: Yes, we can provide an Invoice Financing facility to you as a sole trader or partnership.
Answer: 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 is ongoing but you are not locked in and can leave at any time without penalty or break fees. Other general business securities are also required that you would normally expect with any financier including a General Security Deed and Guarantees of Directors and Business Owners.
Answer: Yes, the Customers you select to go into the facility need to know about AddCash, so that they know to send their payments to your AddCash account which is unique to your business. You still send your Invoices to your Customers, follow up account queries and chase them for payments, so our involvement with your Customers is minimal and you remain in full control of your business. AddCash also offers a fully Confidential facility which suits some Clients – just ask to see if you can qualify.
Answer: 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 80% of the value of approved invoices that you have sent us and the other 20%, less costs, when the Customer pays the invoice. Your selected customers send their EFT payments to an account you hold with AddCash and for Customers who pay by cheque, send direct to our post office box or you can on forward to us using our bar coded reply paid envelopes. We debit our charges to your account which you can view anytime via Online Access, to see amounts funded to you, Customer payments received (with remittance details) and our charges.
Answer: No, it’s up to you. For facility agreement purposes you sell us all of your invoices and this allows you to select the customers that you actually want to obtain funds against from time to time. 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.
Answer: We will fund an invoice for up to 90 days from invoice date. After that, we debit it back to your account, and you can substitute some other invoices of equal value or forgo the 20% normally returned on other Customer payments. When the delayed payment does later reach your AddCash account, if you have already substituted those invoices with new invoicing, the full amount of the late payment will flow straight back to your business.
Answer: No, it’s designed for ongoing use , however, if you have seasonal or other irregular needs, we can make special arrangements for you.
Answer: No, there are no minimum requirements at all. All we ask is that you make reasonable and regular ongoing use of the facility to keep it active. You can terminate the agreement at any time, and there are no penalty exit costs.
Answer: There is a once-only cost to establish the facility, which covers our costs for searches, documents, and registration fees. These costs vary with your business structure and we debit the establishment cost to your account, so you don’t have to pay this upfront.
Answer: The cost is a charge per week, levied on the unpaid invoices against which you are receiving funding. The charge amount ranges from as little as 0.25% per week and is determined by the size and nature of your credit sales. There is no charge for invoices against which you are not receiving funding and only a pro-rata charge for invoices where you are only receiving part funding. Typically it costs less than 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.
Answer: There are usually no other costs, unless we incur any disbursement costs on your behalf.
Answer: Yes, our facility agreement has no ‘lock-in’, so you can terminate the facility at any time, with no exit costs or penalty type fees.
Answer: AddCash makes it as simple as possible. You just fill in a short Application Form and provide us with a few documents. If you qualify, we’ll approve a facility for you quickly, and free of cost or obligation. You then formally accept the approval, and we provide the facility 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 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. We then settle your facility, against your existing debtors ledger, which provides initial funds to you and pays the establishment costs.
Answer: Usually not without real estate security, but AddCash Invoice Finance provides a simple way for a small business to effectively get an unsecured business loan, by unlocking the cash in the existing debts of the business.