Declined by Lendmigo for invoice finance or a credit line?

If Lendmigo declined your invoice finance or credit line, the reason often sits with your debtors: one large customer, slow payers, disputed invoices or progress claims that do not count. HomeSec lends $20,000 to $5,000,000 secured on real estate instead, so your debtor book is not assessed, with up to six months of no repayments.

If Lendmigo declined your application, or the facility offered was smaller than your invoices suggested, the answer probably had more to do with who owes you money than with you. HomeSec offers Australia's fastest and most flexible business loans, with up to 6 months no payments, and we do not look at your debtors at all.

About Lendmigo, briefly

Lendmigo is a newer Sydney-based lender to small and medium businesses, offering invoice finance and credit lines, and it works closely with brokers. Invoice finance can be a good fit for a business with a spread of reliable business customers and clean, undisputed invoices.

Why invoice finance gets declined or cut back

With invoice finance, the debtors are the security, so their quality decides the facility. The common problems:

• Too much owed by one customer. If a single customer makes up most of the ledger, many funders will only advance against a slice of it.
• Debtors who pay slowly. Invoices sitting past sixty or ninety days often stop counting towards the facility.
• Disputed or part-paid invoices. A disagreement over one invoice can take that customer out of the facility altogether.
• Progress claims and retentions. Construction claims that still have to be certified, or retentions held for months, often do not count as finance-ready invoices. When a progress claim has not been paid.
• Customers who are consumers, not businesses. Invoice finance is built for business-to-business debts.

A loan that does not depend on who owes you

A HomeSec loan is secured on real estate. We assess the property, the equity in it, the business purpose and how the loan is repaid, and we never ask for an aged debtors report. One big customer, slow payers or a claim in dispute does not change the amount, which is set by equity: up to 80% of a residential property's value or 70% of a commercial one, less what is owing.

The money arrives as a lump sum rather than a percentage of each invoice, and the slow debtor's payment, when it comes, can be used to pay the loan down. Ad-hoc paydowns from $10,000, once outside the capitalised-interest period.

Where we see this most

Subcontractors waiting on head contractors, labour hire and contract cleaning businesses with a few large clients, and professional firms with long billing cycles. See tradies and contractors and professional services.

What to do in the next 24 hours

1. Note your largest debtors and when they usually pay. It helps plan paydowns, not to assess you.
2. Work out the amount you need as one sum, rather than as a percentage of invoices.
3. Gather the property details: address, rough value and what is owing on it.
4. If a broker introduced the deal, they can bring it to us directly.
5. Call a Lending Manager for an indicative answer, usually on the call.