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Working Capital NZ Advise On Factoring And Invoice Finance

Monday 22 February 2016, 9:16AM

By Beckie Wright

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As the new year kicks in, smaller companies may be experiencing short term cash flow problems, particularly after paying Xmas bonuses and holiday pay and may be in need of a ‘kick start’ in the form of a flexible overdraft or an invoice finance facility and Working Capital NZ are on hand to help with these time-honoured services.

Working Capital NZ can offer a factoring facility which will allow a company a flexible overdraft that will grow with the business.  A company will be able to borrow up to 80% of the value of their invoices on an ongoing basis, usually while retaining any existing banking facilities that they may have. All they need to do is submit their invoices to the team at Working Capital NZ for funding then they look after the collections. The remaining 20% of the invoice value is made available when the debtor pays. A factoring facility allows you to convert your debtor’s ledger to cash immediately, then forget about them, allowing you to focus on growing your business.

Single invoice finance allows companies to turn individual invoices into cash at their discretion so that they are not locked into any term contracts and can fund only the invoices they want, when they want.  It’s that simple. Working Capital NZ pay up to 80% of the invoice value into the company account and that single debtor is advised to pay directly to them for that invoice.  The remaining 20% is paid when the debtor pays.

Single invoice finance is a great idea for companies with only one or two large customers or intermittent cash requirements. Some of Working Capital NZ’s clients just set up a facility for peace of mind, knowing that they can use it if something unexpected happens. In some cases they can offer undisclosed invoice finance to qualifying customers. With an undisclosed the Working Capital team provide a funding line to 80% of the value of the company’s debtor book, without their customers ever knowing they are factoring.

On an ongoing basis the company’s overall balances are submitted to the Working Capital NZ team to make funding available, but the company is still responsible for the collections and their customers are not aware of the relationship. This is a very versatile product generally reserved for high turnover clients with a strong trading history.

For more information please visit their website at http://www.workingcapital.co.nz .