What types of invoices are eligible to be financed?

Export Invoice Financing is available for all business-to-business export invoices where goods have been delivered to an overseas customer. The invoices submitted must be under recognised payment terms

Can Invoice Finance be used to help with foreign currency invoices?

ScotPac can accommodate foreign currency payments and help exporters mitigate the risks of foreign exchange exposure.

Who handles debt collection?

With ScotPac, we offer comprehensive Invoice Finance services including managing debt collection, thus reducing the administrative burden on your business and payment risk for exporters.

How fast can SMEs access funding?

From the time you submit invoices for financing, you can access working capital in as little as 24 hours.

What are the fees associated with Export Invoice Finance?

Always make sure to speak to your loan provider for accurate fees and charges. However, typical fees for Export Invoice Financing NZ can range from 1.5 to 4% of the invoices’ value.

Who should consider Export Invoice Finance?

Both Import and Export Invoice Financing can benefit a range of SMEs and business in New Zealand, including: Trade businesses with cash flow gaps due to unpaid invoices Importers/exporters expanding into new markets Businesses with extended or irregular payment cycles

Export Invoice Finance: Fund NZ Trade Growth Today

Import Invoice Financing and Export Invoice Financing in NZ is a powerful financial tool for growing trade businesses and easing cash flow.

Like standard Invoice Finance facilities, Export Invoice Finance allows New Zealand businesses to leverage the value of their as-of-yet unpaid invoices to cover operational expenditure, expand and invest in ongoing international trade.

In this guide, we will cover everything you need to know to get started with Export Invoice Finance, including:

What is it?

Why do exporters need Invoice Finance?

What are the advantages?

What should you consider?

What are typical eligibility criteria?

What Is Export Invoice Finance?

Export Invoice Finance is a type of funding facility that allows businesses to access up to 85% of the value of their invoice/invoices that clients have yet to pay as a cash advance.

In as little as one business day from submission, exporters can access working capital upfront and use that money for ongoing investment, operations and growth.

Once the invoices are settled, exporters then receive the balance minus any associated fees.

The key to Invoice Finance is that it assists businesses operating in trade to bridge the gap between having to ship goods and receiving payment, thus alleviating cash flow gaps.

Why is Invoice Finance Beneficial for Exporters?

Small and medium sized enterprises (SME) in New Zealand that work in domestic or international trade are often faced with extended credit terms.

This can put pressure on cash flow management and make it difficult for SMEs to ensure they can take advantage of market opportunities, expand operations, or meet unexpected expenditure needs.

Additionally, exporters face a number of additional challenges that Invoice Finance can help you with:

Trading in different currencies
Lack of established business relationships
Higher risks of late payment
Higher risks of non-payment
Cross-border payment terms
Longer standard invoice cycles

In turn, Invoice Finance can be effectively used to mitigate these risks by:

Providing immediate access to cash locked up in unpaid invoices
Reduced dependency on customers’ punctuality in settling invoices
Greater control in receiving funds to manage cash flow

How can Invoice Finance be tailored for Export Businesses?

Finance providers, like ScotPac, work with export businesses to ensure that the structure of their Invoice Finance facility meets the specific needs of their invoicing terms, customs of various business partners, and trade compliance needs.

The lending specialists at ScotPac will consult with you to tailor your access to Invoice Finance to suit the following aspects of your business:

Credit assessment of your overseas customers
Handling foreign currencies
Documentation support that matches your trade cycles
Cross-border debt collection

What are the advantages and disadvantages of Export Trade Finance for New Zealand businesses?

Advantages

Fast access to cash

Your business can access up to 85% of the values of your unpaid invoices upfront in as little as 24 hours.

Flexible credit limits

The flexibility of Invoice Finance allows you to access more working capital as your business grows and your sales increase.

No security needed

Invoice Finance uses the unpaid invoices as leverage so that you do not need to put up your own property as collateral.

Reduces export payment risk

Our specialists can take responsibility of debt collection for you ensuring that the funds you are owed by your customers are paid on time.

Eases cash flow for your business

With full control of when and how much working capital you access, you can ensure your business has the funds it needs to grow, meet business expenditure needs and succeed.

Disadvantages

Invoice Finance is only available for business-to-business SMEs
There are fees associated with Invoice Finance facilities
Depending on your Invoice Finance facility, your customers may be aware of your use of the funding arrangement

Who is eligible for Invoice Finance?

Exporters who may not be eligible for Business Loans and other forms of finance can still be eligible for Invoice Finance.

Eligibility criteria include:

You must be a registered business in New Zealand, exporting sales elsewhere
Your customers must be creditworthy
You will need to provide verifiable export invoices and delivery documentation

Would you like to explore how Invoice Finance can grow your export business?

ScotPac funds $26.3 billion each year and supports more than 9,300 businesses, and has been providing business finance solutions, including Invoice Finance, for over 35 years.

Our lending specialists are here to consult with you and understand your business needs. That way we can customise our Export Invoice Financing offering to help fuel your business’s success.

Ready to explore how Export Invoice Financing can grow your export business? Contact us today.