Introducing Waddle's new credit criteria
We've just made it easier for business owners to get access to the cash flow they need. With our new credit criteria, a Waddle facility is now available to more Australian businesses looking to borrow money against their invoices.
For example, with facilities of up to $50k, we'll just ask that you can demonstrate the majority of your invoices are being paid and that your company directors have clean credit files. Then we'll waive concentration limits and be much more likely to fund your invoices than we were previously.
Waddle for recruiters
We've also recently launched a new product designed specifically for recruiters. As businesses in the recruitment industry can suffer from severe cash flow pressure, they can now be eligible for an advance rate of 85% with reduced concentration limits. Read more about that here.
Our new credit criteria in detail
For all facility sizes we will require the following:
- At least 70% of your invoices over the past 12 months have been paid
- No more than 15% of your invoice ledger is aged over 90 days
- You have a minimum of $10k in invoices (and you have done for each of the last 6 months)
- It takes longer than 7 days for your invoices to be paid
In addition, there are specific credit rules relating to different facility sizes:
For facilities under $25k:
- Advance rate - 80% (this is a percentage of the total value of all of your eligible invoices. If you're in recruitment this could be 85%)
- Concentration limits - none (this means that even if you just have a single debtor, you're still eligible for an 80-85% advance rate)
- Directors - at least one director with a 1 year clean credit file
- Minimum clean business credit file of 2 years (if you have been trading that long, businesses trading a minimum of 6 months are eligible)
We won't need to look into the factorability of your invoices. This means as long as they are being paid, we're happy.
For facilities under $25-50k:
Same as above, but you'll be required to have a minimum of two directors with a 1 year clean credit file. If this is not possible, we will just need to perform a light factorability check (meaning we'll have a chat with you about your invoices).
For facilities under $50-200k:
Same as <$25k, but concentration limits will apply, meaning any single customer will be restricted to 30% of your overall funding, unless they are ASX-listed.
For facilities above $200k:
Same as $50-200k, but we will perform a full factorability check, this means that you will need to provide supporting documentation related to your invoices.
What makes an invoice eligible?
- Have been raised at the completion of providing a good or service
- Are aged no more than 90 days from issue date
- Are invoiced to other AU businesses (B2B)
- Are NOT milestone, staged or progressive invoices
Modern invoice finance
With our new credit criteria, you'll still get all the regular benefits of a Waddle facility. That means innovative tech with the fairest rates and most flexible terms. Other benefits of Waddle include:
- Reduced admin - seamless integration with your accounting package to make bookkeeping easy.
- Confidentiality - your customers pay into an account set up by Waddle in your name. Waddle stays hidden in the background.
- No lock in contracts or unfair fees - only use it when you need it and only pay for it when you do.