Invoice finance for small businesses
Access the cash sitting in your unpaid invoices, before your customers get around to paying them.
Requesting a quote has no impact on your credit score.
About
What is invoice finance?
Invoice finance (also known as debtor finance) lets you access cash from unpaid invoices, using accounts receivable as collateral. You can get up to 80-90% of an outstanding invoice within 24 hours of issuing it, then the remaining balance, minus a fee, once your customer pays.
Funding periods are typically short, which helps keep costs down, and it can all be set up discreetly, so your customers may not need to know a lender is involved.
Typical uses
- Renovating your business premises
- Moving to a new location
- Buying inventory
- Hiring and paying employees
- Buying equipment
- Increasing working capital
- Covering marketing costs
- Making tax payments
Eligibility
You may be eligible for a Invoice finance if your business:
0 of 3 ready. Tick what you already have.
Specific criteria can vary between lenders and products.
Requesting a quote has no impact on your credit score.
- Covering wages while a customer’s payment terms stretch to 60 or 90 days
- Taking on a bigger contract with longer payment terms
- Smoothing out cash flow during a quiet stretch
You may be eligible for invoice finance if your business:
- Has an active ABN or ACN
- Is registered and operating in Australia
- Has been trading for at least 6-12 months
Specific criteria can vary between lenders and products.
Why it works
The benefits of invoice finance
Access cash quickly
Get paid up to 90% of your invoice value within 24 hours and improve your working capital almost instantly.
Spend less time chasing payments
Free up time by letting the lender manage collections from slow-paying customers.
Skip the collateral
The invoices act as security, so you don’t need to put property or personal assets on the line.
Draw on funds only when you need them
Draw down funds when invoices are outstanding, so you're not locked into ongoing repayments.
Solve short-term cash flow gaps.
Use invoice finance to smooth out lumpy cash flow while waiting for clients to pay.
- Are my customers financially stable and reliable?
- How would I feel about a lender contacting my customers to chase payment?
- Would my customers think differently of the business if they knew?
- Is my monthly invoice volume steady enough to meet a lender's minimum?
- Your customers must be seen by lenders as likely to pay.
- You may lose some control over how your accounts receivable are managed.
- In some cases, customers may be notified that a lender is involved.
- Minimum sales volume requirements may apply.
Invoice finance
Key features
- Loan amount
- $3,000 – $1,000,000
- Cost
- Flat fee
Requesting a quote has no impact on your credit score.
Getting started
How to apply for invoice finance
Step 1: Get a quote
Tell us what your business needs and get quotes from 95+ bank and non-bank lenders.
Step 2: Get approved
Confirm your quote and we'll manage the application with your lender, so you can focus on running your business.
Step 3: Get funded
Sign your finance documentation and receive funding. It is that simple.
Requesting a quote has no impact on your credit score.
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Awards & key milestones
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Our panel
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in your back pocket
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- Invoice
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Why Valiant
Just one simple application.
Let us do the heavy lifting, comparing the panel and negotiating. You get all the options side by side and choose the one that’s right for you.
Dedicated specialists by your side.
You get a personal specialist who knows which lenders suit your industry and how to structure a deal so it actually works for you.
Your credit score, protected.
Explore with no credit check. See all your options, compare them properly, and choose with confidence.
30,000+ SMEs we've worked with.
Construction, hospitality, manufacturing, healthcare. Whatever your business needs, we know how to get it funded with the right loan.
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FAQs
What documents do I need to apply for Invoice Finance?
Typically, you'll need the following documents:
- Proof of identity (driver’s license, passport)
- ABN details
- Recent bank statements (6-12 months)
- Tax returns or financial statements
Some lenders may require additional documentation, depending on the loan amount and type.
Will my customers know I'm using invoice finance?
There are both disclosed and undisclosed financing options, depending on the lender. Our team of expert brokers can help you navigate whichever option you go for without affecting your relationships with your clients.
Do I need to provide collateral for invoice finance?
Your invoices act as collateral, so you typically don't need to secure the loan with physical assets.
Invoice finance vs line of credit: Which one fits your needs?
With invoice financing, you can tap into cash from unpaid invoices, using accounts receivable as collateral, which means you get quick access to working capital. A line of credit, on the other hand, is a flexible safety net that lets you access funds as needed, paying interest only on what you use. Invoice finance is more suited to businesses with outstanding invoices, while a line of credit is typically more versatile and adaptable to different financial needs.
Invoice finance vs trade finance: What’s the difference?
The key difference is that invoice financing focuses primarily on domestic transactions to address immediate cash flow needs, while trade financing is designed for international or cross-border trade, allowing you to spread your costs over time while still being able to benefit from discounts and lower shipping per unit.
What are the types of invoice finance?
There are two types of invoice financing—invoice factoring and invoice discounting. With invoice factoring, the lender handles payment collection on your invoices, which means they may call your customer to request payment when deadlines come up and pursue any further collection processes. With invoice discounting, you continue to manage the collection of payment from the invoiced customer, and the lender trusts you to chase down the invoice and make sure it’s paid.
How does invoice financing work?
Invoice finance allows you to leverage your unpaid invoices and free up cash flow. Your lender will pay you a percentage of the amount the customer owes on each unpaid invoice. This way, you can pay suppliers on time without disrupting cash flow, while your lender takes on the debt. When you’ve received your invoices, you can pay your lender back over a longer, more favourable term.