Waiting for insurers to pay invoices is one of the biggest issues facing smash repairers in Australia. Invoice factoring gives you a simple, fast way to access the money you’ve already earned. Here’s a clear breakdown of how it works and why it’s so effective in providing working capital for smash repairers.
Invoice factoring at a glance
Invoice factoring lets you turn unpaid invoices into instant cash – often on the same day. You don’t have to wait for insurers to process or make payments. You send the invoice to a factoring company and receive the amount upfront, less s small factoring fee, usually within hours.
Here are the key points:
- Invoice factoring is not a loan
- You’re simply selling the invoice for early payment
- You stay in full control of your workshop
- Your customer relationships stay the same
- The factoring company deals with the insurer payment
- You get fast, predictable cash flow
For smash repairers who depend on timely insurer payments, this can make a massive difference to day-to-day operations. Using invoice factoring is simple, and you can choose to use it whenever you need to improve your cash flow. There are no lock-in contracts or long term commitments, so you remain in complete control.
How invoice factoring works: Your step-by-step guide
The process is fast, transparent and reliable. Here’s how Working Capital Finance handles invoice factoring for smash repairers across Australia.
Step 1. You complete the repair
Once the repair is finished and ready to invoice, the process begins.
Step 2. You invoice the insurer
You issue the repair invoice to the insurer (NRMA, IAG, Allianz, Suncorp, etc.). This
is the same process you would normally follow.
Step 3. You send that invoice to Working Capital Finance
This is where things change to take advantage of invoice factoring. Instead of sending the invoice direct to the insurer, you send it to Working Capital Finance.
Step 4. We pay you for the invoice, less a small fee
This is where invoice factoring really helps smash repairers. We pay you for the value of the invoice, less a small factoring fee, on the same day (often within hours).
Here’s an example:
- Repair invoice value: $5,000
- Same-day funding from Working Capital Finance: $4,900
- The difference is our factoring fee
Instead of waiting weeks or months for the insurer to pay, you receive the money today.
This helps you with:
- Wages
- Supplier payments
- Running costs
- Purchasing materials
- Planning ahead
Fast cash flow keeps your workshop moving.
5. The insurer pays us for the full invoice value
After you’re funded, Working Capital Finance handles the insurer side of things. You don’t have to:
- Chase payments
- Sit in phone queues
- Follow up claims teams
- Worry about processing delays
We take care of all communication with the insurer until they pay us. We only deal with insurers and never contact your customers or suppliers.
How long does it take to get set up and paid?
Most repairers who use invoice factoring with Working Capital Finance get set up within a day. Once you’re onboard, funding is usually provided:
- Same day for standard payments
- Within 2 hours for urgent payments (rush fee applies)
When it comes to payments, what matters most to us is getting you paid fast so you can get back to business.
Why invoice factoring is popular with smash repairers in Australia
Invoice factoring is ideally suited to how the smash repair industry works. Any business that deals with insurers and needs to be paid by them faces the frustration of slow invoice payments. Waiting weeks or even months for invoice payments slows you down and causes untold stress.
Invoice factoring helps smash repairers, panel beaters, mechanics, auto shops, crash repairers and paint shops to:
- Start and finish jobs on time
- Pay staff and suppliers without delays
- Avoid unnecessary pressure
- Grow and handle more work
- Keep finances stable all year round
Invoice factoring, or invoice discounting, provides much-needed working capital for smash repairers. It is the simple and fast way to avoid long insurer payment cycles, receive the money you are owed immediately and inject much needed funds into your business.
You stay in complete control, and you can focus on keeping your workshop busy and your customers happy, not spending hours chasing insurance companies for payment.
Ready to get started with invoice factoring?
Look for an invoice factoring company that understands your industry and business. Working Capital Finance specialises in invoice factoring for smash repairers across Australia, and we’ve been doing it since 2005. We fund invoices fast (often within a few hours) so you can keep your workshop moving.
Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, Working Capital Finance disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.