Quick answer
Invoice finance advances a large share of the value of unpaid invoices owed to your business by other businesses, so you do not wait 30, 60 or 90 days for cash. When your customer pays, the balance is released to you, less fees. It grows with your sales and suits businesses that invoice other businesses or government on terms.
Key points
- Advances most of each eligible invoice soon after you issue it
- Balance released when the customer pays, less fees
- Facility grows as your sales grow
- Suits businesses invoicing other businesses on terms
- Funded against
- Unpaid invoices to businesses
- Grows with
- Your sales
- Customers know?
- Depends on disclosed or confidential
- Setup
- Takes longer than a loan the first time
For businesses that sell to other businesses, a healthy order book and an empty bank account can sit side by side. The work is done, the invoices are out, and the cash is sitting in your customers’ accounts payable queue. Invoice finance unlocks it.
How does invoice finance work?
- You issue invoices to business customers as normal.
- The funder advances a large share of each eligible invoice’s value, usually soon after it is issued.
- Your customer pays on their usual terms.
- The funder releases the remaining balance to you, minus its fees.
Because the facility is tied to your debtor book, it grows automatically as your sales grow. That makes it a natural fit for businesses whose cash shortfall comes from growth rather than losses.
Who uses invoice finance?
- Labour hire, cleaning and security firms paid monthly by large clients.
- Wholesalers and manufacturers selling to retailers on 30 to 60 day terms.
- Transport companies invoicing freight customers on account.
- Trade businesses doing commercial work for builders.
- Professional services firms with corporate clients.
It is less useful for cafes, shops and other businesses paid on the spot, or those selling mainly to consumers.
Need an answer this week? Send the 60-second enquiry now. Your details stay with one team and a real person picks it up.
Disclosed or confidential?
| Disclosed (factoring) | Confidential (discounting) | |
|---|---|---|
| Customers know | Yes, they pay the funder’s account | No, you collect as usual |
| Who chases debtors | Often the funder | You |
| Typically suits | Smaller or newer businesses | Larger, established businesses |
How does it compare with a line of credit?
Both smooth uneven cash flow. Invoice finance follows your sales and needs eligible invoices. A line of credit is sized on overall trading and can be used for anything. Some businesses run both. See invoice finance vs line of credit.
See what your invoices could release
The invoice cash calculator shows how much a batch of invoices could release now, what follows later and the cost per dollar advanced. Our setup guide explains what funders check when you first apply.
Fix the cause too
Invoice finance treats the symptom of slow payment. Clear payment terms, prompt invoicing and early, polite follow-up treat the cause. The Payment Times Reporting Regulator publishes information on how large businesses pay their small business suppliers, which can be useful context when negotiating terms.
An illustrative example
A labour hire business places workers with three large clients who pay on 45-day terms. Wages go out weekly. As the business wins a fourth client, the gap between paying staff and being paid by clients widens by tens of thousands of dollars a month. An invoice finance facility advances most of each weekly invoice batch, so payroll is covered from the business’s own sales rather than from the owners’ savings.
The short version
- Advances most of each eligible invoice soon after you issue it
- Balance released when the customer pays, less fees
- Facility grows as your sales grow
- Suits businesses invoicing other businesses on terms
What to expect from us
Everything starts with a short enquiry: how much, what for, how long you have traded, roughly what you turn over and whether there is property in the picture. A person, not a scoring engine, reads it and calls you. They ask for the evidence that actually decides the loan, explain the realistic options and give you the full cost in writing. Nothing goes ahead, and no credit check is run, until you say yes. On a complete file, approval within the hour is possible. Every step is explained as it happens, so you always know what is being checked and why.
A simple preparation list
A little preparation makes the first conversation far more useful, and it means the person who calls you can talk about options rather than chasing basic details:
- Your ABN and the legal name of the business.
- Online banking access, so recent statements can be shared through a secure read-only link.
- A rough figure for monthly turnover and the amount you need.
- A list of current loans and repayments, including any ATO payment plan.
- If property is involved, the address and roughly what is owed on it.
About the questions we ask
The enquiry asks for the amount, the purpose, how long you have traded, your monthly revenue, your credit history, your state and whether you own real estate. Each answer steers your enquiry towards the right option. Accurate answers let the first call move straight to solutions. Rounded-up turnover or a credit history that turns out to be different from the form means starting again, which costs everyone time.
Ready to check your options?
To see what is available for your business, complete the 60-second enquiry. It is free, there is no credit check and it goes to one team, not a lead marketplace. Please be precise with the amount, turnover and credit history. Those answers shape everything that follows, and getting them right is the single best way to get a fast, useful answer.
Frequently asked questions
What invoices can be financed?
Generally invoices to other businesses or government for work completed or goods delivered. Invoices to consumers, disputed invoices and very overdue invoices are usually excluded.
What is the difference between factoring and invoice discounting?
Factoring usually involves the funder managing collections, so customers know. Invoice discounting is usually confidential, with you collecting as normal. Both advance funds against invoices.
How long does invoice finance take to set up?
Longer than an unsecured loan the first time, because the funder reviews your debtor ledger and customers. Once running, new invoices can be funded quickly.
What does invoice finance cost?
It usually combines a service fee with a charge for the money advanced. Compare the total dollar cost over a typical month of invoices, rather than any single figure in the quote.
What happens if a customer does not pay?
Most small business facilities are with recourse, meaning you remain responsible if the customer does not pay. Check how the facility treats bad debts before signing.
Ask right here, it takes a minute
The same 60-second enquiry, on this page. No credit check to enquire, and the person who reads it is the person who calls you.