ABR Finance Review for Potential Borrowers
ABR Finance Review for Potential Borrowers
This review of ABR Finance will get under the hood of this small business lender. We’ll take a look at ABR’s company story, lending solutions and minimum borrowing criteria. As always, we’ll search the net for existing ABR Finance reviews to see what existing customers have had to say about their experience and see if there are any common themes which point to the advantages and disadvantages of obtaining funding through ABR. Read our ABR Finance review and see if they meet your business’ working capital needs.
ABR Finance Review – Basic Figures for 2022
Website
Logo
ABN
89 150 923 836
Credit License:
150 923 836
Loan Amount
$10,000 – $300,000
Loan Term
1 to 3 months
Unsecured Loans?
Yes
Response Time
24-48 hour approval
Easy to Apply
Your application can be approved over the phone in just a few minutes.
The Nitty-gritty
Online Reviews
None
Awards and Recognition
None
Minimal Interest Rates
Company Story & Credibility?
Launched in 2012, ABR Finance Pty Ltd is a private finance company specialising in loans for the small business sector. Generally, any small business that sells goods or services on credit terms or has ongoing contractual arrangements with its customers would be a good candidate for our facilities.
We are able to assist businesses that may not fit into a traditional invoice finance structure as their business model is based on a periodic fee arrangement with its customers (e.g. property management agents, child care service providers and fitness centre operators). We can also advance funds against consumer invoices. This is specifically relevant for small contractors and any businesses operating in a professional services sector, such as real estate, accounting and legal service providers.
ABR Finance is an online invoice financing company that provides loans and lines of credit to businesses looking for cash-flow solutions. ABR Finance could help businesses in need of a monetary boost that do not wish to use assets as security on loans. ABR Finance’s products do not require physical assets (such as real estate) as security as its loans are secured against the value of your invoices.
If you’re having difficulty getting finance from a bank or other lender, ABR Finance may be able to help. Its lending system is designed with small businesses in mind, so if you don’t have the paperwork, necessary data or credit rating that’s usually required by loan companies, you might still qualify for finance.
An ABR Finance loan is potentially great for SMEs or start-ups looking for a cash injection or a financial safety net. With ABR Finance, you only pay for what you borrow, whether it is one loan backed by a single invoice or a drawdown from a line of credit that’s secured against your entire sales ledger. ABR Finance is specifically relevant for small contractors and any businesses operating in a professional services sector, such as accounting, real estate and legal service providers.
What Finance Options Do ABR Offer?
Debtor Finance
Fast growing small businesses with customers that take 30, 60 or 90 days to pay their invoices should consider invoice financing as a way of fixing their periodic cash flow problems.
Debtor finance or debtor factoring may not be as well known as other forms of business finance but, in recent years, has been gaining in popularity, specifically with small businesses. This is because, the banks have largely stopped providing overdraft facilities to small businesses that do not have ‘hard’ assets (such as land or plant and equipment) to provide to them as security. In addition, many small businesses are falling behind in their ATO obligations, which means that many banks would not even consider their application until the ATO arrears have been met.
With a debtor finance facility:
- A small business owner can obtain a cash flow injection into their business without the need to provide any other assets as security. That is, you will not be required to mortgage your house to support your business.
- ABR Finance will provide you with up to 80% of the value of your unpaid invoices as soon as these invoices are sent to your customers. For example, if you issues a $5,000 invoice to one of your customers, we will transfer $4,000 into your operational bank account as soon as this invoice is issued to the customer and we receive a copy of that invoice.
- We will not require you to make any payments to us. We will wait until the invoice is paid by your customer to us. When we receive the full amount of the invoice, we will refund the balance to you less our fee.
- The more invoices you issue to your customers, the more cash we can give you. This means that if your business grows, you can get more funding to pay your employees, suppliers and other ongoing expenses.
- You can stay ahead of the competition and grow your market share by providing your customers with extended payment periods knowing that we will pay you for your invoices as soon as they are issued.
Invoice Finance
With our Invoice Finance facility you can receive cash as soon as your invoices are sent to your customers.
In a current competitive environment many small businesses sell their goods and services to their customers on credit terms. That is, they allow their customers 30, 60 and sometimes even 90 days to pay after the delivery of the products or services. This is a great way to gain more customers and grow your business but could potentially be detrimental if your business does not have enough cash to meet its day-to-day expenses while waiting for your customers to pay. Invoice factoring for small business (also known as invoice financing for small business) from ABR Finance can solve the cash flow problems by providing cash to your business as soon as invoices are issued to your customers. We can also offer single invoice finance for any small businesses that may only require funds against a particular invoice or have one major customer.
What is Invoice Finance?
- Invoice Financing involves your business selling its unpaid invoices to us. In return, we will provide you with immediate access to cash, usually equal to 70 to 80% of the total face value of the invoices.
- When an invoice is paid by your customer to us, we will pay the balance of the face value of the invoice to you, less our fees.
- Invoice Financing can be completely confidential. That is, you do not have to disclose to your customers that the invoices have been sold to us.
How can my business benefit?
Invoice Finance (or Debtor Finance) is designed for businesses who sell their products or services to customers on payment terms but may not have access to sufficient funds to meet current business expenses.
Features on offer with ABR Finance
- No security. With ABR Finance, your loans are backed against your invoice ledger.
- Get 80% of invoice value. ABR Finance funds up to 80% of unpaid invoices ahead of payment. Once your invoice has been paid, you’ll receive the rest of the cash, minus ABR Finance’s fee.
- Easy repayments. Once qualified, your customers will pay straight to an ABR Finance account in your business’s name, so all loan costs will be deducted from the payment automatically.
- $10,000-$300,000 cash available. ABR offers loans and lines of credit upwards of $10,000 up to $300,000.
- Grow your loan with your business. As your business grows, so will your line of credit. The more clients you have, the more you can borrow.
- Flexible solution. ABR’s loans are a flexible solution for those businesses that may be turned down by traditional lenders.
- Easy application. Your application can be approved over the phone in just a few minutes.
- 24-48 hour approval. ABR usually approves applications in less than two days.
- No minimum payments. You do not have to make any minimum monthly repayment as long as the outstanding balance on your line of credit is below your approved limit.
- 30-90 day issued invoice finance. If you’re a B2B that invoices clients on payment terms of 30-90 days, you could qualify for a loan from APR Finance.
- 30-60 day issued invoice line of credit. To qualify for a line of credit with ABR Finance, you must issue invoices with terms of 60 days or less.
ABR Finance Review Summary
Name: ABR Finance
Summary
ABR Finance is an online invoice financing company that provides loans and lines of credit to businesses looking for cash-flow solutions. These loans are unsecured. You can get 80% of your invoices financed ahead of payments. The cost of invoice financing will depend on the size of the loan and loan period, but ABR Finance will charge a fee once your invoices have been paid in full. You can also get a revolving line of credit starting from $10,000 up to $300,000, and increase your credit as your business grows. To qualify for a loan, you must issue invoices on payment terms of 30 to 60 days or 30 to 90 days if you’re a B2B.
Pros
- You can receive cash as soon as the invoices are raised and sent to the customers for payment. This will improve the cashflow and working capital position of your business.
- You can use the funds to meet ATO and payroll obligations, purchase new plant and equipment or finance business expansion.
- No bricks and mortar security required.
- This facility is ongoing for as long as you need it and it can be tailored to suit your specific business needs.
- No penalties for early repayment and no exit fees.
- There are no annual reviews or hidden costs.
- The approval process is fast and simple. Applications can be completed over the phone and, in most cases, loan approval provided within 48 hours.
Cons