Published on 23 Mar 2015, in MyBusiness
InvoiceBid, a new peer-to-peer business lending platform, has launched in Australia with the aim of changing the way SMEs access finance.
InvoiceBid, founded by Melbourne-based Chartered Accountants Charlotte Petris and Andrew Petris (pictured), enables SME business owners to access to the cash tied up in their outstanding invoices immediately, without waiting for payment.
Eligible businesses include those that have large corporations as customers and typically wait more than 30 days to be paid. InvoiceBid supports businesses during a high growth phase, helping them hire new staff, pay suppliers, or buy new equipment to increase distribution and production.
The whole process, from application to funding can take as little as 48 hours. Business owners can apply online and select invoices to upload onto the InvoiceBid platform. Funds are then advanced to the business in as little as 24 hours.
“Our online platform directly matches businesses with a network of investors to offer fast, flexible and lower cost funding,” Charlotte Petris said. “This means business owners can access working capital to grow their business faster.”
InvoiceBid can also fund businesses that might not be able to get funding from the bank, for example, seasonal or export businesses. Or they may choose not to use a bank because they don’t want to put up their personal property as security or be locked into contracts.
“We empower business owners by putting them completely in control of their finances,” Charlotte continues. “Where there are existing arrangements, we have been able to reduce their cost of finance by up to half.”
InvoiceBid is a completely new approach to traditional invoice discounting or factoring and differs in the following ways:
- Flexibility: Select what invoices to sell and at what price. It’s a pay-as-you-go model with no lock in contracts or up-front costs.
- Pricing: The innovative technology ensures the lowest cost of finance, which reduces over time as you build up a track record on the platform.
- Available Funding: Cash advanced up to 100 per cent of the invoice amount.
- Transparency: See the total cost of funding clearly and up front, every time an invoice is funded.
- Hassle Free: InvoiceBid does not require personal guarantees or security and the online platform saves business owners time.