What Is Invoice Financing?
Invoice financing is a facility that allows businesses to borrow money against unpaid invoices. It has become increasingly popular as a way to bridge gaps caused by slow customer payments.
With an invoice finance facility, a lender approves a financing limit, and the business can receive up to 95% of the value of approved unpaid invoices. Once the customer pays the invoice, the advance is settled, and the remaining balance—minus any fees—is credited back. Interest is charged only on the borrowed amount for the outstanding period, helping businesses manage expenses and make growth decisions. This facility is also known as Invoice Discounting.
Eligibility Criteria
Not all businesses qualify for invoice financing. To be eligible:
- The business must have an active ABN or ACN
- There must be outstanding invoices issued to other Australian businesses
- Proof of delivery must be available for the invoices issued
Our Loan Guide
Unsecured Business Loans
Loan Amount
$5k - $150k
Interest rates from
9.99% p.a.
Loan term
Ongoing
-
Pre - approved time
24 hours – 72 hours -
Unconditional approval & settlement time
7-10 days -
Pay Cycle
Gets settled against payment of invoices within 60-90 days -
Security
Secured against current assets of the business | No real estate security required
Disclaimer - The information provided in this critical information sheet is for general guidance only. Please contact us if you require further details.
What you need to know?
Can be used for
- Buying stock/Inventory
- Paying creditors
- Other working capital needs
Documents required
- Last 6-12 months bank statement.
- Financial statements with Receivables/Payables ledger
- Sample invoice with proof of delivery
- ATO statements
- Valid identification proof
Benefits
- Get paid against invoices in advance
- Can go higher funding without real estate security
- Does not impact business leverage
What you should know about Invoice Financing
Advantages and Disadvantages of Invoice Funding?
Advantages
- Boosts Cash Flow: Access funds from unpaid invoices immediately.
- Speeds Up Working Capital: Get money faster than waiting for customers to pay.
- Flexible Funding: Financing grows as your invoice volume increases.
- No Additional Collateral: Your invoices serve as security.
- Helps Manage Growth: Keep up with supplier payments and business expansion.
- Reduces Stress: Smooths out cash flow gaps and keeps operations running.
Disadvantages
- Wait time: invoice finance facility takes a longer time to get approved.
- Proof of Delivery: Will need to provide an invoice with proof of delivery to get an invoice financed every time.
