Pre Repair Finance for Smash Repairs

Working Capital Finance makes it easy for you to get your money Faster

New to Working Capital Finance?

Fill out the Registration Form and we will get back to you

New Invoices to be Sold?

Fill out the Factoring Service Request Form and we will get back to you

Smash Repair Completed?

Fill out the Vehicle Collection and Clearance Form if the insurer does not have one

Pay your business expenses quickly before completing your smash repairs with Pre-Repair Financing

What is Pre Repair Finance?

If you run a smash repairing business, Working Capital Finance can pay your business suppliers BEFORE you have even started the repairs – we call this Pre-Repair Financing or PRF for short.

We will pay ANY of your business suppliers’ invoices (EXCEPT Wages or Rent) directly as soon as ANY Insurer approves your quote and sends you a Repair Authority (RA).

The RA just needs to be for a larger amount than you need us to pay. Send us the RA and the business invoice/quote you want paid and we will take care of the rest.

What Happens When the Repair Is Done?

As soon as you have ANY Insurer’s RA you can use Pre-Repair Finance, to pay for  ANY expense in your business except for rent and wages.   The expenses we pay don’t need to relate at all to the car on the RA.

Please note, when you have finished the repairs, you MUST factor that invoice with us.  From the factoring cash , we will take out the amount we have paid to your suppliers plus our fees, and then you get the rest of the money by EFT that same day.

How Long Do I Have To Pay?

Pre-Repair Finance is best for short-term funding (under 30 days):

  • Our cost is only 3% of the amount paid for up to the first 30 days.
  • For each day over 30 days, it is an additional 0.15% per day on the amount we paid to your supplier.

The penalty rate is there because we really don’t want outstanding PRF costs past 30 days. You can always pay back the PRF early to avoid this penalty.

How Does Pre-Repair Finance Help Small Businesses?

Use Pre-Repair Finance to earn extra revenue.

If the extra money you earn because PRF lets you do more repairs is greater than the cost of the PRF you win.

For example, a WA repairer recently declined a repair job because he could not afford the upfront cost for parts ($15,000).

After paying our small fees for PRF ($450) this repairer would have made $2,250 mark-up on the parts plus his labour profit on top of that.

He could have completed the job and made far more than $1800 (net).

Use Pre-Repair Finance to avoid heavy late fees.

If the costs you avoid because PRF lets you pay an account on time is greater than the cost of the PRF you win.

For example, some Suppliers charge up to 7% on amounts paid to them late.  Repairer used PRF to have us pay $5,000 to this Supplier on time.  It cost them $150 BUT they avoid a Late Payment Penalty of $350, so they saved $200.

In summary it makes sense to use PRF when:

  • The extra revenue you earn from taking on extra jobs is more than the cost of PRF
  • When extra expenses you avoid (such as late fees or frozen supplier accounts) is more than the cost of PRF

Find out more information about our services by reading our FAQs.

Speak to Working Capital Finance for More Information

Any questions about Pre-Repair Finance, just call Working Capital Finance. We will help you understand if this financing option is right for your business.  Call us on (02) 9968 2328 or contact us online.