Our review of ABR Finance
ABR Finance is a specialist business lender offering invoice finance and a business line of credit in Australia. You can borrow between $10,000 and $300,000 from ABR Finance without providing security, and approvals on finance applications are given within 48 hours.
ABR Finance will consider applicants with bad credit and is a suitable lender for new businesses unable to provide the required paperwork for approval on a standard business loan.
|Suitable if your business:||Suitable for businesses considering:|
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ABR Finance Overview
ABR Finance offers two types of business finance, both of which are assessed on existing business sales:
- Invoice Finance - Business owners access cash flow by selling their outstanding customer invoices. ABR Finance provides immediate payment of up to 80% of the invoice value.
- Business Line of Credit - Business owners can access a line of credit which is assessed on their issued orders.
You can apply for a business line of credit or invoice finance with ABR Finance online. You’ll need to supply the following information as part of your enquiry:
- Full name
- Email address
- Phone number
- Name of your business
ABR Finance isn’t specific about the interest rates and fees charged for loan applications, however a small percentage of each invoice sold will be retained as a fee. There are no details provided by ABR Finance about the fees or interest rates applied to a business line of credit.
ABR Finance Invoice Finance Review
ABR Finance offers upfront payment on customer invoices between 70 and 80 per cent of their value. Invoice financing is appropriate if your business has customers who take 30, 60, or 90 days to pay their invoices and you’d like to fix your periodic cash flow problem.
Once the invoice is paid, you’ll receive the remaining value minus ABR Finance’s fee.
In the example below, you can see how invoice finance might work with a 2% fee:
- A business sells an invoice for $10,000
- ABR Finance pays the business 80% upfront
- The business receives $8,000
- The customer pays the invoice
- ABR releases the remaining amount (18%) minus the fee (2%)
- The business receives $1,800
- ABR Finance retains $200 as their fee
ABR Finance’s fee is calculated as a percentage on a case-by-case basis, which depends on the financial health of your business as well as the size and term of your loan.
|Approval Time||24 - 48 hours|
|Upfront Finance Amount||70 - 80% of the invoice value|
|Fees||Deducted from the remaining 20% balance|
|Credit Rating||Poor Credit Accepted|
Learn more about Invoice Finance.
ABR Finance Business Line of Credit Review
ABR Finance offers a business line of credit of up to 80% of your issued orders, with a maximum credit limit of $300,000. Issued orders within your business include:
- Purchase orders
- Stock orders
- Work-in-progress orders
ABR Finance only charges interest on the amount drawn down on a line of credit. There are no minimum repayments required, provided the overdrawn amount plus interest does not exceed your credit limit. For example:
- A business applies for a $100,000 line of credit
- The business draws down $40,000
- ABR Finance applies interest to the drawn amount ($40,000)
- There are no minimum repayments
- The drawn amount accrues interest, which decreases the remaining available credit amount
There are no minimum payments required by the business, provided the drawn amount does not exceed $100,000. If the business were to continue drawing funds:
- The business draws down the remaining credit amount
- ABR Finance applies interest to the drawn amount ($100,000)
- As the drawn amount ($100,000) is accruing interest, the business must make minimum monthly repayments to ensure the drawn balance remains below $100,000
Interest-only repayments will meet the minimum repayment requirements, however if the business wishes to access funds from their line of credit again, they will need to repay the interest and a portion of the principal to decrease the drawn amount.
|Approval Time||24 hours|
|Minimum Credit Limit||$10,000|
|Maximum Credit Limit||$300,000|
Learn more about a Business Line of Credit.
Money.com.au ABR Finance Summary
ABR Finance is a specialist lender offering invoice finance and a business line of credit. You can borrow between $10,000 and $300,000, and ABR Finance is a suitable lender if you want to increase the cash flow of your business either by selling your invoices or by obtaining a line of credit relative to your business orders:
- Invoice Finance will allow you to sell outstanding customer invoices for an upfront payment of 80% of their value.
- A business line of credit will allow you to access an amount of finance up to 80% of your issued orders.
These two types of business finance are ideal where:
- The business invoices customers
- The business receives regular, reliable payments
- The business requires regular, variable orders of stock
ABR Finance does not require collateral for either of their business finance products, and will consider applicants with bad credit. The lender services a range of industries, including:
- IT service providers
- Transport companies
- Real estate agents
- Lawyers and barristers
- Fitness centres
- Childcare providers
- Equipment-hire companies
ABR Finance also founded Invox Finance, a decentralised peer-to-peer lending platform for invoice finance, which enables additional trust and transparency through a built-in rewards system and distributed ledger:
- Invox Finance allows invoice sellers, buyers, and other service providers to connect and share information
- Financiers can see the payment history between buyers and sellers and assess the risk of non-payment