Confidential invoice factoring

Quick facts

Amount

Advance of up to 95% of the value of your invoice (your entire sales ledger)

Term

Depends on the product and on your payment terms (e.g. 30, 60, 90 or 120 days)

Cost

A weekly or monthly factoring rate of 0.5-5% of the total invoices, with higher rates for longer factoring periods, plus set-up fee (plus extra for bad debt protection)

Speed

Usually within 48 hours

Purpose of finance

To ease cash flow and to minimise late payment and debt – and to hand over credit control to your lender (albeit confidentially)

Suitable for

A broad range of businesses with B2B invoices (e.g. seasonal businesses, those with occasional large projects and those with just a few debtors) who want to keep their factoring arrangement confidential – some providers will work with new businesses

Confidential factoring is a type of invoice finance. It offers the cash advance and credit control aspects of a normal factoring facility – but with the confidentiality of invoice discounting.

Confidential invoice factoring works on the same principle as normal factoring. You still outsource your credit control to the factoring provider. The only difference is how the lender (i.e. the factoring provider or factor) introduces themselves to your customers. With normal factoring, the provider uses their own name, whereas with confidential factoring the provider acts as your own accounting department, using your company name (and brand) when communicating with customers. If they make or take calls they do so as if calling from your business (with a dedicated phone line).

If you’re concerned about confidentiality, you might also consider confidential invoice discounting and confidential CHOCS.

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Disclaimer: Swoop Finance Pty Ltd (ABN 52 644 513 333) helps Australian firms access business finance, working directly with firms and their trusted advisors. We are a credit broker and do not provide finance products ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Swoop Finance Pty Ltd can introduce applicants to a number of providers based on the applicants’ circumstances and creditworthiness, we may receive a commission or finder’s fee for effecting such introductions. Swoop Finance Pty Ltd does not provide any kind of advice and in giving you information about providers products, we are not making any suggestion or recommendation to you about a particular product. Offers of finance are subject to a separate assessment process by the provider and subject to their terms and conditions. If you feel you have a complaint, please read our complaints section which is contained within our terms and conditions.