Selective Invoice Financing and How It Can Help Your Cash Flow

March 28, 2019

Business owners need cash, and they need it when they need it. They’re busy building their business: they don’t have time for complicated application and approval systems – and can’t afford expensive credit or financing arrangements that last longer than they need. And they certainly don’t want to hear they can’t get Invoice Finance because they “don’t qualify.”

Selective Invoice Finance offering provides early payment on your outstanding invoices. This allows you to improve your cash flow, build your business and improve your bottom line.

How It Works

Our model is built on purchasing invoices from firms (like you) with great customers.  Your customers could be mid-sized organizations generating $15 million in revenues, US based multi-nationals or anything in between.

In essence, Accelerated Payments purchase your accounts receivable invoice, giving you 80% of the value upfront.  We then charge a fee of 1.3% per month and release the remaining 20% less interest fees and bank charges, when your customer pays us.  Accelerated Payments provide funding within 24 to 48 hours of the invoice being approved by your customer.

The great thing about the Accelerated Payments model is that the invoices being sent by you to your customers are in your name and your customer pays the invoice into a bank account also in your name.  We accept invoices and thus payments from all over the world and can set up Canadian dollar, US dollar and US ACH accounts to receive payment.  

This solution is a nice compliment to an existing Line of Credit from a traditional banking institution. Accelerated Payments are actually receiving referrals from a number of financial institutions to help their clients.  In many cases, the financial institutions existing covenants do not allow them to provide more lending to their clients, however they know that if their customers can improve their cash flow then they will become more viable and healthy customers.  

As an example, Accelerated Payments has a customer in the Hamilton area that does business with US and international steel mills. Their LOC with their bank has reached its limit. However, the company is growing and needs cash flow to pay for materials and labour to produce more in order to drive further growth.  As the cash flow comes in, they can free up space on their LOC for lower cost growth.  Accelerated Payments is a conduit for better cash flow with no stress in the short and medium term.  The plan over time is that as their balance sheet gets stronger, they will be able to get larger facilities from their traditional banking institution.  

Here is a summary of how Accelerated Payments does invoice financing differently

No personal guarantees:  Accelerated Payments does not require a personal guarantee from the business owner. They are able to truly leverage their customers’ balance sheet and credit worthiness. This not only provides peace of mind for the entrepreneur, but also allows them to grow on the back of their customers credit worthiness. 

Leverage technology: Accelerated Payments leverages OnePosting, a commercial e-invoicing platform (used by firms like Loblaws) to deliver invoices to the customer. Customers can approve invoices digitally in the cloud, thus initiating the funding process. 

Little to no disruption for your clients: Accelerated Payments make the approval of invoices, banking information, and delivery of invoices easy for both you and your customer.

More choice: Clients can pick and choose which invoices they decide to finance. This allows choice and flexibility in using Accelerated Payments. The technology that helps to drive this is built on OnePosting. There is no obligation to finance invoices, it is up to the client to decide how much or how little they want to finance. This allows for flexibility especially between busy and slower periods.

Transparency and reporting: Accelerated Payments provide an on-line portal that allows the client to understand what invoices are financed and which ones have been settled with Accelerated Payments. This is an on demand feature that gives control and transparency to the customer.
Competitive rates: Accelerated Payments offer very competitive rates by using technology to drive down the administration costs.  The Rate is 1.3% for every 30 days with a once off $750 annual subscription fee (paid when the first invoice is drawn down). 

Please feel free to contact me if you would like more information.  I would welcome the chance to introduce you to Accelerated Payments in more detail and discuss how we can assist you with your cash flow needs. 

Steve Gruber
Director of Sales
Accelerated Payments Ltd.
Offices in Grimsby & Toronto
613 291 9952