Invoice finance is a business funding solution that allows you to unlock cash tied up in unpaid customer invoices. Instead of waiting 30, 60 or even 90 days for customers to pay, you can access most of the invoice value shortly after issuing it. This improves cash flow and provides working capital to help your business grow.

How does invoice finance work?

Once you've supplied your goods or services and issued an invoice, you send a copy to your invoice finance provider. The provider advances a large percentage of the invoice value, often within 24 hours. When your customer pays the invoice, you receive the remaining balance, less the agreed fees.

Invoice finance is the umbrella term for funding secured against unpaid invoices.

Invoice factoring involves the finance provider managing the collection of payments from your customers. This is what we do for you.

Invoice discounting allows you to continue managing your own debtor collections while borrowing against your unpaid invoices, and it’s a form of confidential invoice finance, which is only available for qualifying businesses..

The right solution depends on your business, your customers and your cash flow requirements.

The cost of invoice finance depends on factors including your annual turnover, the value of your invoices, the number of customers you have and the type of facility you choose. Your provider should explain all fees upfront so you understand exactly what you're paying.

That depends on the type of facility. With invoice factoring, customers usually pay your finance provider directly. With confidential invoice discounting, your customers may continue paying you without knowing you have an invoice finance facility.

In most cases, no. Invoice finance is widely used by successful businesses to improve cash flow and fund growth. A professional invoice finance provider like us understands that your customer relationships are valuable. We communicate with your customers professionally and respectfully.

Invoice finance and business loans serve different purposes. A business loan provides a fixed amount that is repaid over time. Invoice finance releases cash you've already earned by funding unpaid invoices, so the amount of available funding grows as your sales increase. For businesses with slow-paying customers, it is often a more flexible way to improve cash flow.

Yes. Many startups and small businesses use invoice finance to improve working capital while they establish and grow. As long as your business invoices other businesses on agreed payment terms and your customers are creditworthy, invoice finance may be an option.

This depends on your invoice finance agreement. Some facilities are with recourse, meaning you may need to repay the advance if the invoice remains unpaid. Others include credit protection against customer insolvency. Your provider will explain how your facility works before you sign an agreement.

If your business regularly waits for customers to pay invoices and cash flow is holding you back, invoice finance may be worth considering. It can help you bridge the gap between completing work and receiving payment, giving you greater certainty and flexibility.

Once your invoice finance facility is established, funding is often available within 24 hours of submitting an approved invoice. This means you can access working capital much sooner than waiting for your customers to pay.

Most invoice finance providers advance between 70% and 90% of the invoice value upfront. The exact amount depends on your business, your customers and the quality of your accounts receivable.

Depending on the type of facility, yes. Some businesses choose to finance selected invoices or customers, while others finance their entire sales ledger. The best option depends on your funding requirements.

Invoice finance is ideal for businesses that sell to other businesses on credit terms. It is commonly used by manufacturers, wholesalers, transport companies, engineering firms, labour hire businesses, construction suppliers, importers, exporters and professional service firms.

Yes. By improving cash flow and increasing available working capital, invoice finance can help you purchase stock, hire staff, accept larger contracts, invest in equipment and take advantage of new business opportunities without waiting for customers to pay.

Invoice finance is not suitable for businesses that are paid immediately, such as retailers, cafés, restaurants or businesses that primarily sell directly to consumers, and collect cash or funds at the time of purchase. Businesses that do not issue invoices on payment terms are usually not suitable candidates. Businesses with credit terms of seven days are also not suitable.

Invoice finance is different from a traditional business loan because it is secured against money your business has already earned through unpaid invoices. Rather than borrowing against future income, you are unlocking cash tied up in your accounts receivable.

Late payment by customers does not necessarily affect your ability to continue using invoice finance. Your provider will work with you to manage your debtor ledger and explain any time limits that apply under your agreement.

For many businesses, yes. Unlike an overdraft, which has a fixed limit, an invoice finance facility can grow alongside your business as your sales increase. This makes it an attractive funding option for businesses experiencing growth.

Look for an invoice finance provider that offers transparent pricing, flexible facilities, responsive customer service and experience in your industry. The right provider should take the time to understand your business and recommend a solution that supports your long-term growth, not just your immediate cash flow needs.

In New Zealand, the terms invoice finance and debtor finance are often used interchangeably. Both describe funding that allows businesses to access cash tied up in unpaid customer invoices rather than waiting for payment terms to expire.

Depending on the provider, debtor finance may refer to a range of funding solutions, including invoice factoring, invoice discounting, and other accounts receivable finance products. The right solution depends on your business, your customers and your cash flow needs.

If you're unsure which option is right for your business, we can explain the differences and recommend the most suitable funding solution.