Apricity has an application and facility establishment fee. The establishment fee is deducted the first time you use the facility. A small assignment fee and retention is deducted from each invoice with up to 95% of the invoice paid to your account upon approval. Once full payment is received from your debtor the balance of the invoice is returned to you, less our funding fee.
In most instances, the only security we require are the invoices themselves. This is why we only fund invoices issued to your larger, higher value customers.
We can advance up to 95% of the value of approved invoices. Most other factoring businesses will only pay around 80-85% of invoice value – often less. Banks will sometimes provide up to 80% of your outstanding invoice amounts, depending on your company’s overall debt levels.
Yes, Apricity allows you to choose which invoices you raised against your approved debtors you wish to fund, at what time and at what percentage. For example, you may choose only to fund 50% or 70% of your invoice (up to 95%). Once your debtors and invoices are approved, it’s totally up to you.
Factoring businesses will usually take over the management of all your accounts receivable. Our solution, selective invoice finance, means you choose what you want to fund, when, as well as what percentage. You remain responsible for chasing the payment of invoices from your clients.
Depending on your bank and setup, approved funds are accessible very quickly. In some cases almost immediately. Although generally speaking, within 24 hours from invoice approval.
Yes. We need acknowledgement that the invoices being funded have been approved and will be paid into our account. At the establishment of the facility, you may also have to send a ‘Notice of Assignment’ to your customers and obtain their confirmation that your bank details have been changed to ours. We may also need to contact your clients from time to time to verify the approval of invoices, so you can continue to receive funding.
Yes, in fact many of our clients have used our facility to clear existing debts to rectify their balance sheet. If your lines of credit are exhausted, or you have a debt with the ATO for example, you may be restricted in your borrowing capacity and the cash flow of your business is likely to be suffering. Using invoice finance to clear your debts can pave the way for new finance or other capital expenditure.