Invoice Finance
Invoice Finance is a cashflow funding solution that advances money against unpaid invoices, allowing businesses to access funds immediately instead of waiting 30–90 days for customer payments.
Why It Matters
Slow customer payments can choke business cashflow. Invoice Finance unlocks funds already owed to you, helping cover expenses like payroll, supplier bills, and operating costs. It pairs effectively with the Business Owners Finance Hub, including Business Lines of Credit and Working Capital Loans.
How It Works
- You issue an invoice to your customer.
- The lender advances 70–90% of the invoice amount upfront.
- Your customer pays later as usual.
- The lender releases the balance, minus fees.
This forms part of the Business Cashflow System alongside LOCs and Working Capital Loans.
Common Use Cases
- Managing payroll during long payment cycles
- Paying suppliers sooner
- Smoothing cashflow for trades, freight, manufacturing, wholesale
- Supporting growth without cashflow strain
Related Switchboard Resources
- Invoice Finance – Business Cashflow Facility
- Invoice Finance 101
- Business Line of Credit Guide
- Working Capital Loans 2025
- Tradie Hub
- Whitecoat Hub
For official information on cashflow, visit business.gov.au.
Is Invoice Finance a loan?
No — it’s an advance against unpaid invoices, not a traditional loan.
Will customers know?
Some facilities are confidential; others require disclosure.
Does funding grow with my sales?
Yes — the more invoices your business issues, the more cash you can unlock.