Invoice Finance is a cashflow funding solution that advances money against unpaid invoices, allowing businesses to access funds sooner 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.

If you want the practical version (who it suits, typical docs, and how approvals move), use invoice discounting for eligibility and document requirements.

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 for Growing SMEs (Working Capital)
• Business Line of Credit
• Working Capital Loans
• Tradie Hub
• Whitecoat Hub

For official information on managing business cashflow, visit business.gov.au.