Key Takeaways
- Invoice financing allows NDIS providers to access funds tied up in unpaid invoices, improving cash flow.
- Traditional lenders often avoid NDIS invoice financing since NDIS businesses are technically not B2B. However, some specialist lenders provide funding for this niche.
- Expert finance brokers like Dark Horse Financial can connect NDIS businesses with lenders who understand the disability services sector.
- Invoice financing helps providers manage payroll, rent, and operations while waiting for NDIS payments to clear.
- Providers can typically receive funding within a day up to a few days, depending on the amount of the invoices and the lender.
- Eligibility typically depends on invoice quality and the customers’ payment history, making it an accessible type of financing so long as you have unpaid invoices.
- Dark Horse Financial offers personalised support, negotiating favourable terms and helping NDIS providers access tailored finance solutions.
As an NDIS provider, delivering essential services while keeping your cash flow healthy can be a constant balancing act. Payments through the National Disability Insurance Scheme (NDIS) can be delayed due to administrative backlogs, participant-managed plans, or lengthy invoicing cycles. This can significantly strain your resources, especially when wages, rent, and operational costs are due.
While many lenders avoid offering invoice financing for NDIS providers, there are specialised solutions available. At Dark Horse Financial, we understand the unique challenges that come with operating an NDIS business, and we work with lenders who provide NDIS invoice financing tailored to the disability support sector.
In this article, we’ll explore how invoice financing solutions for NDIS providers can unlock working capital, how they work, who is eligible, and how you can secure fast and flexible funding through expert lending brokers.
What Is Invoice Financing for NDIS Providers?
Invoice financing is a business funding solution that allows companies to access funds tied up in unpaid invoices. Instead of waiting weeks or months for payment, businesses can receive a significant portion of the invoice amount upfront, typically up to 85%, from a lender. Once the invoice is paid in full by the customer (or in the case of NDIS, the relevant funding body), the remaining balance is remitted to the business, minus a small service fee.
How Can Invoice Financing Help NDIS Cash Flow Issues?
Operating an NDIS business often requires significant upfront investment in staffing, transportation, equipment, and compliance. Yet, payment for services can lag behind by weeks. This mismatch between revenue and expenses can lead to chronic cash flow problems.
Here’s how invoice financing helps NDIS cash flow:
- Immediate access to cash: Rather than waiting 14 to 60+ days for NDIS payments, providers can receive cash from their invoices within 24 hours.
- Stabilise payroll and operations: Invoice finance enables providers to pay staff, rent, utilities, and other ongoing expenses on time.
- Fuel growth and expansion: With working capital unlocked, businesses can onboard new clients, invest in technology, or expand services without cash restraints.
- Smooth income variability: NDIS businesses often experience seasonal or irregular demand. Invoice finance bridges those income gaps.
Are NDIS Providers Eligible for Invoice Finance?
The answer is yes, but not through just any lender. While traditional healthcare invoice finance is generally business-to-business (B2B), NDIS providers often invoice government agencies, plan managers, or even directly to participants. These factors can make some lenders exclude NDIS businesses from their lending solutions, as the ultimate customer can be deemed the care recipient and not a business entity.
However, some specialist lenders in this space recognise the reliability of NDIS funding and are willing to offer NDIS invoice financing solutions.
Eligibility criteria for NDIS invoice financing are typically not strict, especially when looking at credit history. Instead, lenders will look at the quality of invoices (they must be accurate, complete, and verifiable) and the payers’ payment history before approving.
If you need help accessing invoice financing for your NDIS business, contact our team at Dark Horse Financial, and we can help you secure this type of financing.
What Are the Advantages of Invoice Finance for NDIS Providers?
Here are some benefits of invoice financing for disability businesses:
1. Faster Access to Working Capital
Rather than waiting 14–60 days for payment, invoice finance allows you to access up to 85% of the invoice value within 24 hours, or up to a few days. This means you can cover expenses like staff wages, rent, transport, and compliance costs without delay.
2. Improved Cash Flow Stability
Consistent cash flow is critical for maintaining service delivery and scaling your business. Invoice financing smooths out cash flow gaps caused by delayed NDIS payments, giving your business financial breathing room.
3. No Need for Property or Asset Security
With invoice finance, you don’t need to put up your personal or business assets as security. Your invoices act as the primary security for the facility.
4. Scalable Funding as Your Business Grows
The more services you deliver and invoices you issue, the more funding becomes available. This makes invoice finance an ideal solution for growing NDIS providers who need flexible capital to take on new clients and expand operations.
How Quickly Can NDIS Businesses Access Invoice Financing?
For NDIS businesses facing urgent cash flow shortages, time is of the essence. With invoice financing, you can access up to 85% of your invoices’ value within 24 hours or up to a few days. This quick turnaround can help you address pressing costs immediately.
How We Can Help NDIS Providers Secure Invoice Finance
Accessing invoice finance can be challenging when your operations fall outside the standard B2B model. As experienced lending experts with deep industry knowledge, we help NDIS providers:
- Access niche invoice financing for NDIS business
- Work with lenders who understand disability sector cash flows
- Negotiate competitive terms and interest rates
We help you navigate a space where many lenders simply don’t provide lending to your type of business. By working with us, you gain access to tailored invoice financing solutions for NDIS providers that would be difficult to secure on your own.
Final Word
While traditional invoice finance isn’t always a straightforward fit for the NDIS sector, specialised lenders can make it possible for more providers to unlock the value of their invoices and stabilise their cash flow.
Invoice financing for NDIS providers helps disability businesses bridge the gap between service delivery and payment. It allows them to grow sustainably, pay staff on time, and meet their obligations without stress.
Access The Value of Unpaid Invoices
If you’re an NDIS provider struggling with late payments or looking to expand your services, don’t wait. Reach out to the team at Dark Horse Financial for a free consultation. We’ll connect you with lenders who understand your business and help you access the working capital you need fast.
