FREQUENTLY ASKED QUESTIONS
You’ve got questions. We’ve got answers.
We’re here to help keep your business and cash flow moving. Included here are answers to some questions we get a lot. If you’re still unsure about something, feel free to contact us and we’ll do our best to help you.
General
Is Working Capital Finance a bank or broker?
No, we’re not a bank or broker. We’re your finance partner who works exclusively with smash repairers. That means we understand your industry and business, we offer flexible funding and we make faster decisions. No corporate red tape and frustrating delays – just straightforward help and funding when you need it.
How long have you been in business?
We’ve been helping smash repairers right across Australia since 2005, for more than 20 years. Backed in our early days by the Moror Traders Association of NSW and the MTA of SA, since then we’ve built an enviable reputation for fast, fair and reliable funding.
Who can apply for funding?
We work with smash repairers, panel beaters, mechanics, auto shops, crash repairers and paint shops. If you work in the automotive industry and invoice insurers for the work you do, then we can help improve your cash flow and keep your business running smoothly.
How quickly can I get started with you?
In most cases, new customers can be set up within a day. Once you’re approved, funding can be arranged on the same day as you send us invoices for factoring, orRepair Approvals and supplier invoices for pre-repair finance.
Invoice factoring
Is invoice factoring a loan?
No. Invoice factoring or discounting is not a loan. It is simply an early payment of all your invoice (less a small fee) for money already owed to you. You are just selling the invoice to us.
How quickly can I get paid?
In most cases, you’ll get the funds same day. If urgent, we can get funds to you in just 2 hours (rush fee applies).
Can I choose which invoices to factor?
Yes. It is entirely up to you which invoices you would like to sell (or factor) to us.
Do you contact my customers or suppliers?
No. We deal with you and the insurers only. Your client and supplier relationships remain yours and we do not contact them.
Do I keep control of my business?
Absolutely. We fund your invoices, not your business. You run your workshop, we help improve your cash flow.
Is there a minimum fee?
Invoices below $20,000 attract a flat 2% funding fee, with a minimum fee of $40per invoice. Some factoring can cost as little as 1.0% of invoice value.
Do I have to sign a contract?
No. This service is available to you if and when you need it, and you only pay when you use it.
Pre-repair finance
Is pre-repair finance a loan?
No. It’s an advance on the factoring payment you get after you complete therepair and send the repair invoice (addressed to the insurer per the standard invoice factoring process). It’s funding for parts and supplies that you need to complete the repairs. You don’t pay interest, you pay a percentage fee (4.0%) of the amount paid on your behalf to your supplier.
Who gets paid – me or my suppliers?
We pay your suppliers directly for the cost of parts and supplies, ensuring they get delivered quickly to your workshop so you can get on with the repair job.
How quickly are payments made to my suppliers?
In most cases, payments are made direct to your suppliers on the same day, usually within a few hours. Urgent payments can be made within two hours for an additional rush fee of $36.00.
What repair jobs qualify for pre-repair finance?
Any supplier invoice or monthly statement for parts and materials (except wages and rent) can be funded as long as you have a Repair Authority (RA) from any insurer that is larger than the amount you want us to pay.
Do the supplier invoices need to relate to the Repair Authority?
No. Other than rent or wages, we’ll pay any business expense with a supplier invoice or monthly statement. The expenses we pay do not need to relate to the vehicle on the RA. The RA just needs to be larger than the amount we are to pay the supplier. We will even pay your BAS to the tax department or your monthly Capricorn statement.
How do I repay pre-repair finance?
We require you to factor the repair invoice with us that relates to the RA against which we provided pre-repair funding, once the repair is completed. We then immediately pay you the net factoring amount you are still owed for that factored invoice. This is your repair invoice amount less the amount we paid previously to your supplier less our fees form the pre-repair finance (4.0%) and our factoring fee(which can be as little as 1.0% of your repair invoice value). Then we chase the insurer for the repayment of your factored invoice as part of our standard factoring process. Once the insurer pays us, we are fully repaid.
How quickly do you require payment for funds paid to suppliers using pre-repair finance?
Pre-repair finance is best used for 30 days or less. Beyond 30 days, you pay a flat late fee of an additional 0.15% per day of the amount we paid your supplier. If you use pre-repair finance and complete the repair in less than 30 days, and factor the invoice for the completed repair with us, you will only pay 4.0% of the amount we paid your supplier (plus our factoring fee).