- Your company generates invoices for your business sales.
- Instead of waiting for your customers to pay, you sell the invoices to Nova.
- Nova advances up to 80% of the total to your company and holds the balance in reserve.
- Nova collects the full balance of the invoice from your customers.
- Nova returns the reserved balance to you less a fee for the funding and management.
Invoice Factoring for Business
Here’s how factoring finance works:
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Who we are
Simply put, Nova Business Finance is a SME finance specialist helping clients all across Australia. We help small businesses grow their business and earn more money in a shorter time with invoice factoring and debtor finance. As a successful business in a growing economic market, we pride ourselves in getting the job done promptly. Our staff members are all highly qualified, experienced and are happy to help and advise you in any way. Our method of financing small and medium business is simple, yet highly effective.
At Nova Business Finance, we love the challenge of complex business cases. So, if you need an innovative solution that are a step away from the norm, well that’s exactly what we do. Our team will solve your cashflow worries and help your business on the road to success.
So many promising companies have failed, not because they don’t have a good businesses or because of management or competition problems, but because they don’t have access to capital. Often, it’s something quite trivial, like payments being delayed, which can lead to a financial crunch. That money may be needed urgently to pay various bills and to continue generating an income. It’s often said that you can go broke making a profit and that’s where reliable cashflow financing comes in.
Like a house of cards, the entire cashflow system can come crashing down and the business can collapse. It’s a sad reality and many start-ups and small businesses have fallen victim to financial ruin through the lack of cashflow. Their problems can often be solved through cash flow finance. Our job is to assist SME’s they don’t have to face that. We may well be able to provide the cashflow finance you need, especially if your customers are not paying on time.
What is Factoring?
To help you to better understand our services, we will explain the concept of invoice factoring in detail, which forms the centre point of our services. Through factoring, we help you generate a continuous cash flow. IN other words we can smooth out the cashflow ups and downs.
Invoice factoring is one option our B2B clients can avail themselves of. This helps you manage and better manage cashflow. To put it simply, we provide you prompt cash in-hand against unpaid sales invoices for goods and services that have already been sold and delivered. This eases the burden on your working capital require an additional financial buffer to cater for payments 30, 60 or 90 days plus. This means that you can release that extra capital to grow and expand your businesses once you cashflow problems are eased. You can then use this cash to pay your suppliers or reinvest it, to hire more staff or purchase more inventory or run a major promotional campaign. Go and grow your business.
The great thing about invoice factoring is that it’s not a loan, so you’re not burdened by the same financial implications. There is not set payment provided your customers pay. With invoice factoring, you’re essentially selling your ‘accounts receivable’ to a factoring company. Your accounts receivable are the monies you are owed for services you’ve rendered or from the sale of products.
Our team will advance you a percentage of the money in exchange for the rights to collect your invoices. We will then assist your business in collecting the debts from your customers. We understand just how precious trust and relationships are, so you’re not going to lose the clientele you’ve worked so hard to build.
Why Should You Use Nova Business Finance?
Invoice factoring is really quite simple; you just need to understand the basics, and the benefits will be obvious. Through our small business invoice factoring services, we ensure you can convert your unpaid sales invoices into cash today or tomorrow instead of waiting 30, 60 or 90 days.
As a factoring company, we offer solutions that are beyond those offered by traditional financial services. We assist to smooth out your cashflow by releasing funds that would otherwise be tied up in the hands of your customers. With the additional resources you can free up, like time and money, you can focus more on your key revenue-generating areas. The fee we charge is easily offset by the growth in your business and the time and effort you could then invest in developing your business further, instead of chasing up on loan applications or those late paying accounts.
At Nova Business Finance, we aim to help you in multiple ways. Knowledge is definitely power and our services include offering you access to data that could help you make better decisions. Having accurate information about rates, market trends and even customers’ preferences can help you put your business on the fast-track to success. With access to our credit data and rating system, you’ll have a wealth of information at your fingertips, allowing you to expand your customer base in leaps and bounds.
The fact that ‘factoring finance’ is not a traditional loan that must be backed with bricks is something every business is drawn to. Why accumulate debts when you don’t have a shortfall? In fact, the money is yours, but you can’t use it because it’s locked up in unpaid debtors. We don’t believe someone else’s constraints should limit your prospects. This ‘debt’ burden is something that will likely increase with time, with the chaotic financial outlook. Without an effective strategy, your cash flow problem isn’t just going to sort itself out. Make the choice to use debt factoring and start leveraging the money before it’s even in your hand. Why wait for months and follow up endlessly for something you should be able to get with a snap of your fingers?
There are some who believe that invoice factoring companies are a risk. What if the customer doesn’t pay, or refuses to pay in full? We don’t share this view. We have a job to do, and we make sure to do it with full commitment. At Nova Business Finance, our focus is on the solution, not on a possible problem or potential risk. When you hire us to generate a stable cashflow, we make sure it happens!
As an SME, expanding your business is a key factor to long-term sustainability. It’s simple—you need capital to create more capital. The problem is traditional lending is based on how much real estate you have. If your business outgrows the value of your real estate your business growth stalls. Not with factoring. Not with debtor finance and invoice factoring. It doesn’t factor in what you’ve done and not yet been paid for. Outstanding’s or debtors are more like a burden, rather than an asset, which is what they really are.
Invoice factoring allows you to turns that asset into cash now.
We don’t need your balance sheets or cash flow statements or how long you’ve been in business to decide whether to help you. Simply provide us with a run-down of your credit history and let us worry about the funds receivable. The great thing about factoring is that it is limitless. You don’t have to ‘pay it back’. In short, you don’t need to worry about cashflow. Just focus on the growth of your company and we’ll take care of the rest.
At Nova Business Finance, we aim to find viable and long-term solutions for every client, so we often work with businesses that sell on credit. However, that doesn’t mean we won’t work with you if you have a retention payment or progress draw. So, don’t worry about these technicalities; just drop us a line and we’ll design something that suits you.
Our motto is transparency and we take it really seriously. We know what it would take for us to trust someone and we strive to deliver nothing short of that. Any information you need, we provide in full, without holding anything back. We’re not fans of tricky disclaimers so we would never do that to you.
To prove by example, here’s our process:
When you generate sales invoices, these invoices will be sorted under the section of ‘accounts receivable’. This is all the money you are owed but have yet to receive. If you don’t receive it within time, well you know that as well as we do. If you don’t have cash, how will you pay your staff? Or even your basic utilities? How will you purchase more raw materials or pay for services which are essential for you to continue generating income?
This is where we come in. Instead of waiting for months to receive all your outstanding, you can sell us your invoices and get paid almost immediately. We’ll give you up to 80% of your total invoice value in advance. The remaining 20% of is held in reserve by us which is paid out when your customer pays.
Once we’ve received the invoiced amount from your client, we pay the reserved amount back to you.
Peace of mind
Running a business can be very stressful. At times, more money is going out than money filtering in. We understand this happens, regardless of how successful or well-established you may be. Our aim is to give our clients the peace of mind they deserve, since it’s money they are owed.
While we are known for our factoring services, we also take care of your insurance premiums. Our method of funding your premium insurance guarantees that your policy is always valid. As a financial firm, we know the implications of delayed insurance payments.
We also assist clients who need money urgently. We can give disburse short-term loans immediately, and you can pay them back over a period of time. We may ask you to provide us with real estate security, HOWEVER, that is open to discussion. We can sort out a deal which suits you! This choice is an attractive one for many. You don’t need to wait for your accountant to sort out huge amounts of paper work. You don’t need an application to be approved or wait for a credit committee’s consideration. This swift exchange of money helps you save your assets today!
At Nova Business Finance, we employ a team of specialists with the skills and experience necessary to get the job done! It’s their enthusiasm and depth of knowledge that has helped us succeed. For them, cash-flow problems are no more than a puzzle that can be solved quickly with the right approach.
As financial experts, they have had extensive exposure to the woes of finance and they are well-versed in accounting and insurance. Their willingness to study new situations and learn from them is what has helped us progress. Finance, especially in SME’s is not what you would call a boring industry, there’s always something happening, some new development. This flux is what drives us to understand what you need deeply and adapt ourselves to provide it.
At Nova Business Finance our staff doesn’t see a wall, they see an opportunity. We have an optimistic approach towards our clients’ challenges and a ‘Where there’s a Will, there’s a Way’ approach. So, no matter how dire your straights are, come to us and we can help you to find a way through.
A Final Word…
Nova Business Finance isn’t just another one of Australia’s leading factoring finance companies. We are the Number One finance company in our locale and beyond that too! We aim to set ourselves up-front and centre by listening to your financial requirements and working to fulfil them. In our eyes, every problem has a solution… It just needs to be found!
Now, we’ve outlined our process and explained our methods. I hope you don’t get us wrong. We’re not trying to treat you like a child. We did it so we leave no doubt about our transparency. We want your trust and the only way we think we’ll get, is by doing what we would expect in return for our trust.
It’s your business. You’re the customer now and we’re obligated to do our best to meet and even exceed your expectations. We need to explain how we’re going to do it and communicate any relevant information to you. How else are we going to build a working relationship that we both can profit from??
At Nova Business Finance, we constantly work towards creating a team of increasingly competent, skilled individuals. They are willing to share the load and work to find a solution that works for you. Their experience and adaptability to change is what makes them an asset for your business.
Our method is aimed at generating a stable cash flow for you, while saving you from the throes of conventional lending services. It’s not because they don’t work, it’s just that we’ve got a different way of doing it, which may work in your favour. It’s the benefits attached to factoring that make it so popular. You don’t need to wait. You don’t need to stress yourself, spend time, money or resources on getting the money that is owed to you. Instead, you can utilise all that on your company’s growth, customer satisfaction, or whatever helps your business grow, rather than worrying about money, money, money.
If you want to explore how we can help you, give us a call!