Your Business

How invoice finance can help repay ATO debt

Team Waddle  •  20 June, 2022

The ATO's holiday for small business debt has come to an end, with many small businesses now looking at how they can repay their debts and avoid being reported to credit agencies.

For Australian businesses with unpaid invoices, Waddle's innovative invoice finance solution could be the answer to unlocking funds to pay back debt and improve cash flow all at once.

What is invoice finance?

Invoice financing is effectively a flexible line of credit that uses the funds tied up in your outstanding invoices to provide funding to your business or company. As a leading invoice financing company in Australia, Waddle makes it incredibly easy for you to get the working capital or cash flow your business needs to:

  • Repay a debt or business expense
  • Pay employees
  • Fund growth opportunities
  • Cover day-to-day costs

How does invoice finance work?

When you complete services or deliver products, you naturally invoice your clients. However, your industry's payment terms might mean you're waiting anywhere from 14-60 days for your customers to pay.

Invoice financing allows you to access the money that is waiting to be paid. Essentially, your unpaid invoices are used as collateral for funding!

You can access up to 85% of the value of your outstanding invoices with Waddle!

As your customers pay their invoices as normal, your balance is repaid, and you get to keep the portion of the invoice that wasn't financed (minus any fees).

How can I pay tax debt with unpaid invoices?

Sometimes, tax can be tricky to manage. If you've got a handle on your accounts receivable ledger, you may be able to access the funds in your unpaid invoices to use for support.

A Waddle facility is available to businesses that:

  • Invoice other Aussie businesses
  • Have Australian-based directors
  • Have been trading for 6 months or longer
  • And have more than $10,000 waiting to be paid in invoices

If your small business satisfies these criteria, then you could apply for Waddle invoice finance to help with your tax. We have an incredibly fast set-up, where we can provide approval and funds in as little as 24 hours.

You could then use these funds to make payments towards your ATO account.

Top tip: you can check your tax details, including your outstanding balance and due date by going onto the ATO website and logging into Online Services for Business.

Let Waddle improve your business cash flow and pay tax debts

At Waddle, we want to grow with you, which is why we make it as easy as possible to manage your cash flow.

Debt owing to the tax office can be worrying, but you can breathe easy with Waddle. We are backed by an Australian Credit Licence and make sure to consider your individual circumstances when you apply.

Not only do we offer a free quote in as little as two minutes and can have funds in your account in 24-48 hours (subject to a credit assessment), but Waddle also provides the following benefits:

  • Unlike other short term loans, we do not require real estate or other fixed assets as security
  • We have clear fees with no fixed term commitment - there are no surprise charges, just your interest rate plus a monthly or drawdown fee
  • We will not contact your customers; our facility is fully confidential
  • We provide ongoing access to your Waddle account through our online portal

To understand more about how Waddle can support your business, check out our website or contact the Waddle team today!

You Might Also Be Interested In...

Ready to get started?

Connect your accounting software to see how much you could borrow