Earlypay launches Low Doc solution to help businesses improve cash flow

Lee Trego, Head of Growth at Earlypay

Australia’s business finance solutions provider, Earlypay, has introduced the country’s first AI powered Low Doc Invoice Finance product which provides pre-approval in as little as two hours to assist businesses improve cash flow by tapping into the cash locked in their clients’ unpaid invoices. Earlypay is experiencing high levels of enquiry since launching the product.

Why is Low Doc a game changer for businesses?

According to Lee Trego, Head of Growth at Earlypay, businesses are facing an unprecedented maelstrom of late payers, rising interest rates, supply chain delays, soaring costs of doing business, labour and skills shortages and global market volatility. “Despite the issues businesses are facing, Australia’s economy is still strong however businesses need help to sure up cash flow during these unprecedented and volatile times,” Trego commented.

“Our new Low Doc Invoice Finance product will enable more businesses to access the financial assistance they need without being forced to jump through undignified and time intensive hoops simply to unlock funds from their own invoices,” Trego said.

“Businesses don’t want to take out traditional loans, or their credit score has been badly affected by COVID that they are unable to secure finance. This is where Invoice Finance becomes the star performer for businesses that need help getting funds in the door quickly.”

“Invoice Finance enables businesses to unlock the revenue in their unpaid invoices in order to generate cash upfront. The only collateral that is used as part of the process is the invoices themselves. Business owners don’t need to put up the house or give away equity. Invoice Finance is even ideal for businesses with tax debts or other trading challenges. Our new Low Doc Invoice Finance product will now assist even more businesses,” Trego further added.

Earlypay’s new Low Doc cash flow solution enables businesses to unlock cash from clients’ unpaid invoices within 24 hours. In addition to speed of access, the new solution provides businesses with the ability to access up to $500,000 with minimal information required.

How are late payments plaguing the economy?

“Given the pressures facing certain sectors of the economy, we are offering industry-specific automatic pre-approval. These include manufacturing, transport, wholesale, labour hire, equipment hire and security services. These industries are in need of support to help them deal with urgent cash flow issues and an unprecedented rise in late payments,” Trego added.

“A report by Xero has highlighted that late payments are continuing to blow out. On average over 50% of all invoices sent by businesses to clients are being paid late by an average of 23 days. For some industries, these figures are much worse. While bigger businesses have the capacity to soak up these late payments, small businesses with lower cashflow do not and as a result they urgently need assistance to deal with the challenges being thrown at them.”

“Debtor management is a time intensive activity and one that needs to be undertaken with care and courtesy. This is the other benefit of Invoice Finance. Not only does it get cash in the door fast, it also takes burdensome debt collection activities off the hands of businesses so they can focus on delivering and growing their business. Onboarding is simple and fast.”

“For businesses that use Xero or MYOB, we are able to integrate their accounts software with our platform enabling fast payment and easy follow up with their clients for payment.”

Trego also explained that given the rise in demand for multi-product finance solutions, Earlypay will now exclusively offer Equipment Finance alongside cash flow lending solutions. “BThis will enable us to help more businesses with more flexible solutions across our suite. It is clear from our clients, when used in unison, both solutions support business growth.”

Trego states that the global devastating pandemic has created an extraordinary and unusual set of trading circumstances for businesses and that it will be the businesses that act quickly to sure up cash flow that maintain a healthy business and succeed over the next 24 months, and be well prepared should the world be impacted by any further black swan events.