apply for funding using our debtor finance, invoice discounting and factoring services

Frequently Asked Questions:

What is Invoice Discounting?

Invoice Discounting (also known as Invoice Financing or Debtor Financing) is a form of business finance widely used throughout New Zealand. We do not lend you money. Instead we buy for cash some of your customer's invoices selected by you, enabling you to get on with running your business without the stress of cash flow headaches.

Is this Really Just Factoring?

No. Unlike Factoring, Invoice Discounting does not take over your whole debtor ledger or require you to sign up for a minimum period of say a year. Nor do we charge administration fees, etc. Invoice Discounting is simply you selling an invoice to us for cash on a "as you need to" basis. It is a flexible and quick way to access the money owed to you immediately so you can grow your business or meet your commitments without waiting for your customers to pay.

Why use Invoice Discounting rather than a Bank Overdraft?

We encourage you to fully utilize your bank relationship including a normal overdraft facility. We are there to help when your bank may need to say "No" or you do not want to put up your house or other assets as collateral. Our security is only over the invoices we purchase, not your fixed assets. Unlike an overdraft, you do not pay for the facility if you are not using it. Our fee is based only on the actual invoices purchased. There is nothing for you to pay when you are not using the service.

What will it Cost Us?

Our fee starts at 4% of the invoice purchased. The fee increases depending on how long it is before the debtor pays. You will be given our fee schedule so you can see what the actual fee will be. There are no set up, documentation or administration fees.

When do We get Paid & How Much?

Once initial documentation is completed, we can fund an invoice in about 24 hours (maybe sooner). We pay 90% of the invoice value by direct credit into your account overnight. When your customer pays us, we deduct our fee & pass the balance of the remaining 10% directly on to you.

Can We Sell Invoices Owed to Us by Consumers?

No. We deal with business to business invoices only.

How Will Using Invoice Discounting Affect Our Ability to Borrow Funds?

As we do not lend you money, but buy some of your accounts receivable, this will not affect your ability to borrow from your bank or other funding organizations.

Does My Industry Sector or Size Matter?

No. Interface Financial has clients across a wide range of industries and sizes.

What Minimum/Maximum Debts Do You Buy?

We purchase down to about $5000 invoice value. There is no maximum.

Do You Fund Contracts to Supply?

No. We cannot fund a future event. We buy only invoices for goods/services already supplied. We will, however, fund progress payments where applicable.

What Happens if Our Customer Fails to Pay You?

This very rarely happens as we do prior credit checks on the debtor. However, if a debtor does not pay, you will buy the invoice back from us (or swap for another invoice of similar value). You then deal directly with your customer for payment or use a debt collection agency.