FAQ

What is invoice finance?

Invoice finance is short term financing, used to improve the working capital and cash flow position of your business. Businesses that have large corporates as customers typically have to wait 30-90 days for their invoices to be paid. Invoice finance enables you to sell your invoices at a discount and get paid immediately.

Why use Timelio invoice finance?

Timelio is an online, peer-to-peer marketplace (P2P) that allows businesses to gain access to 100% of the value of their invoices. It is easy to use, has no lock in contracts and is a great way for businesses to increase working capital to grow and take advantage of new opportunities.

How do I sign up?

Fill out our simple online application and get started.

Is it difficult to use Timelio?

Not at all, our platform is quick and easy to use and our online application process saves you time. Simply upload an invoice and get funds the same day!

Can I use Timelio?

Yes, if you are an Australian registered business with customers that are large corporations or government bodies and you need working capital to grow your business.

Do you have minimum turnover requirements?

No, we assess each application on a case by case basis - we've funded startups through to established businesses. We only require a minimum invoice size of $10,000 (talk to us about bundling smaller sized invoices).

Is Timelio different to factoring?

Yes, we do not require you to fund all of your invoices. You select the invoices as you want to finance, to bring in exactly the amount of cash you need for your business. Timelio offers flexible finance and you're not tied in to long term contracts. There are no ongoing fees and you know exactly your cost of finance upfront. And importantly, we don't interfere with your customer relationship.

How much does it cost?

There are two fees:

- Transaction fee on each invoice funded (GST is charged)
- Discount fee to Timelio investors, calculated daily (GST exempt)

There are no hidden costs. The total cost of funding will be clearly presented before an invoice is financed and will depend on the invoice value and expected payment date. Get in touch and we'd be happy to give you pricing information specific to your business.

Are my invoice finance costs fixed?

There are no fixed costs. As you build up an invoice trading history on our platform and investors see a history of repayment from your debtors, your cost of finance may reduce over time.

How much do I receive?

Up to 100% of the invoice value is advanced, less any fees. A Late Payment Reserve is withheld that is equal to one month’s discount fee and is paid to you when the debtor pays on time.

What happens if an invoice is paid late?

The discount fee paid to investors accrues at a daily rate and will be adjusted accordingly. Any additional discount fee accrued after the expected payment date will be deducted from the Late Payment Reserve.

What happens if my customer doesn’t pay the invoice?

Timelio does not chase the debtor for payment. Recourse is to you in the event of non-payment by the debtor.

Do you contact my customer?

Once a trade is ready, Timelio seek verification with the debtor and this is led by you. A confidential service can be offered in specific circumstances.

Do you offer contract finance?

Yes, we enable you to unlock the cash in your contracts. We can fund contract progress payments or recurring revenue such as licenses. To find out more, contact us to speak with a funding specialist.

Can you fund my overseas invoice?

 Yes, if you export and have overseas customers we can fund up to 90% of the invoice value.

 

Who can be an investor?

At this stage, investors must be institutional, sophisticated or professional investors.

What does the sign up and approval process involve?
  1. Complete online application
  2. An email requesting documentation will be sent by Timelio
  3. Return required proof of identity, address and certified investor level certificate from your accountant
  4. Once approved, investors will need to fund their account before investing
Is there a minimum to fund my account?

Yes. We currently require investors to fund their accounts with a minimum of $25,000. An investor must have enough cash in their account to fund their investments.

What due diligence on sellers and debtors does Timelio do?

Before being approved to sell invoices on the platform, all invoice sellers undergo a rigorous credit assessment by Timelio.

Third party analytics and searches are used to further support our internal assessment. Only those businesses that successfully pass are able to sell invoices on the platform. Before being made available for investment, each invoice and debtor will be verified and authenticated. Investors can view all supporting documentation online before investing.

Is my investment secured against any assets of the invoice seller? What priority do I have if the seller goes out of business and the invoice has not been paid?

Where possible, all invoice receivables will be registered on the Personal Property Securities Register. In the event an invoice is not paid and the seller is no longer in business, investors will have the ability to recover proceeds as a secured creditor of the Seller’s business assets.

What returns can I expect?

The return on invoice trades depend on the discount rate you bid to win the auction and the actual debtor payment date.

How is my return affected if an invoice is paid late?

The investor return is accrued on a daily basis. If an invoice is paid early or late, investor returns are adjusted accordingly, often with a minimum 30 day investment period.

What happens if the debtor does not pay?

All invoices sold on the platform are full recourse to the seller. They are responsible for chasing their overdue invoices and if payment is not made within 45 days of the expected payment date, the seller is required to repay the investor.

What does Timelio charge investors?

Timelio charge investors 15% plus GST on discounts earned. There are no other fees or costs to the investor.

What does Timelio do with my personal data?

Some personal data is collected to satisfy Anti-Money Laundering and Know Your Customer requirements. It is used to verify applicants during the approval process and filed securely. Your personal data will not be used for any other purpose.

Is the Timelio Capital Fund open to retail investors?

Currently the Fund is only open to sophisticated, wholesale and professional investors.

Is the Fund regulated by ASIC?

The Fund operates as an unregistered managed investment scheme. The Fund manager, Icon Fund Management Pty Ltd ACN 119 490 952, is an Australian Financial Services Licence (AFSL) holder number 323106, regulated by ASIC. Icon Fund Management is a wholly owned subsidiary of Timelio Pty Ltd.

How secure is my money?

Investing in the Timelio Capital Fund carries risk. The Fund purchases discounted receivables from Australian businesses with no guarantee of payment. Whilst Timelio has in place controls and procedures to mitigate risk, losses may occur and capital may be lost as a result. The value of your investment can go down as well as up.

What are the expected returns?

The Fund’s expected returns are 7-8% per year, net of fees.

Do you use third party custodians?

The Fund does not currently use a third party custodian.

What is the minimum cash needed to invest in the Fund?

The minimum balance to open a Timelio Capital Fund investor account is AUD$50,000 and subsequent subscriptions can be made in AUD$10,000 increments.

How often can I invest in and withdraw my money from the Fund?

Subscriptions for new units in the Fund can be made each month. Requests for redeeming your cash from the Fund can be made quarterly.

Do I receive statements of my account balance and performance?

Account balances can be viewed online at anytime. Each month the Fund Manager makes available the performance report to investors.

Is the invoice finance provided to SMEs secured over any assets?

Timelio is responsible for registering security interests on the Personal Property Securities Register (PPSR) on behalf of investors. Depending on the nature of the transaction, security is taken over the invoice, the SMEs assets or Personal Guarantees. In some instances, all three may be taken as security.

Will the Fund pay regular dividends?

The Fund distributes returns quarterly.

What are the fees?

The Fund charges an annual management fee of 0.50% (plus GST), accrued daily and paid monthly to the Fund Manager.

Is there a prospectus or information memorandum?

An Information Memorandum is available. Please contact investors@timelio.com.au for further information.

What is SCF?

A simple solution that enables you to improve your cash flow by receiving early payment from your customer.

How does it work?

You provide your customer with invoices due for payment as you currently do. Once the invoices are approved for payment, your customer submits the request to Timelio. You will receive an email from Timelio inviting you to log in to the Timelio portal to select which invoices you would like to get paid early. Payment is made into your bank account, less the early discount fee.

Can I select which invoices are paid early?

Yes, you can individually select which invoices you choose to receive early payment.

Can I have all invoices paid early?

Yes, when you register you can make this choice.

How can I keep track of invoices that have been approved by my customer?

Timelio allows you to see this information as soon as the payment is approved by your customer.

When will I receive payment?

You will receive the payment within 24 hours after you have elected for early payment.

Is there a minimum or maximum number of transactions to participate?

No, there isn’t you can do as many or as little as you want.

How is the discount rate determined?

The discount rate applied to the invoice to be paid early is based on the benchmark rate plus margin which has been agreed with your buyer.

Do I need to change my bank account?

There is no change, payment is made into your bank account as usual.

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