Who Provides Invoice and Debtor Finance in Australia? Who Funds What
Invoice and Trade Finance
Providers compared · Advance rates · Fees and switching
Banks, non-bank specialists, fintech platforms and spot funders all provide invoice and debtor finance in Australia, on very different terms. This guide compares who funds what, as each provider type publishes it, what each excludes, how each prices, and how to switch.
Quick Answer
Australian invoice finance providers include NAB, Westpac, ScotPac, Earlypay, Moneytech and Fifo Capital. Banks usually suit established B2B businesses; specialist and selective funders may take smaller facilities, shorter histories or one large customer. Compare invoices accepted, usable advance, total fees, notification and exit terms, not headline rates. See the named providers.
Also called: invoice finance companies, debtor finance providers, invoice factoring companies, invoice discounting providers. Factoring companies buy and collect the invoices, discounting providers lend against them while the business keeps collecting, and debtor finance is the umbrella term Australian banks and specialists use for both.
Who provides invoice and debtor finance in Australia?
Four kinds of provider fund invoice and debtor finance in Australia: the invoice finance divisions of the major banks, non-bank specialists, fintech platforms that advance against an accounting-software ledger, and spot or selective funders that buy one invoice at a time.
The market is larger than most owners assume: an industry estimate published in BCR's World Factoring Yearbook 2026 puts the volume of Australian invoice finance and factoring at around AUD 95 billion in 2025 (BCR, WFY 2026, read 7 October 2026). That figure comes from an industry contributor rather than official statistics, so treat it as an order of magnitude, not a measured total.
Major bank divisions run invoice finance inside business banking. They suit established businesses that clear a published turnover floor, and they usually run the facility confidentially, so customers keep paying as normal while the bank funds behind the scenes. Security is typically taken over the receivables and the business rather than over real property.
Non-bank specialists make receivables funding their core line. They fund whole ledgers and selected invoices, a few fund construction progress claims, and they regularly take businesses a bank has declined. A non-bank lender sits outside the Banking Code of Practice, which matters later in this guide.
Fintech and platform funders connect to your accounting software, read the live ledger and advance against it, usually on a pay-for-what-you-use basis with limits that move as the ledger moves.
Spot and selective funders buy or advance against one invoice or a chosen few, which suits a business with one strong customer or an occasional gap rather than a standing need.
Two adjacent providers sit at the edge of the market. Indigenous Business Australia, a Commonwealth lender, offers invoice finance to businesses that are at least 50 per cent Indigenous-owned, have traded profitably for at least two years and make at least $500,000 a year in credit sales, advancing up to 80 per cent of eligible invoices (Indigenous Business Australia, invoice finance, read 7 October 2026). And trade and supplier finance pays suppliers on the buyer's behalf, which is a payables product rather than receivables finance; it is covered in our guide to trade finance for importers.
This guide compares the providers, not the product. If you need the product first, read what invoice finance is and how it works, or see invoice and debtor finance through Switchboard for how we place it. Government guidance describes factoring as a factor buying a business's outstanding invoices at a discount and chasing the debtors, and invoice finance as the same idea with the invoices staying with the business (business.gov.au key financial terms, updated 9 July 2024).
| Provider type | What it funds | Typical business it suits | How the facility runs | Where to read more on this site |
|---|---|---|---|---|
| Major bank invoice finance divisions | Whole-ledger confidential invoice finance and discounting | Established B2B businesses above the bank's turnover floor with clean financials | Confidential, integrated with the bank's accounts, annual review, covenants | Bank or non-bank, below |
| Non-bank specialists | Whole-ledger and selective invoice finance, factoring and discounting, some progress claims | B2B businesses from about six months trading, including those declined by a bank or carrying an ATO arrangement | Disclosed or confidential, ledger verified, fast setup, no property security in most cases | When a non-bank fits, below |
| Fintech and software-led funders | Advances against an accounting-software ledger | Smaller B2B businesses on cloud accounting software with a spread of debtors | App-synced, pay for what you use, limits set by the live ledger | Published terms, below |
| Spot and selective funders | One invoice or a chosen few, bought or advanced | Businesses with one strong debtor or an occasional cash gap | Per-invoice fee, disclosed or undisclosed, same day once onboarded | Single invoice finance guide |
| Trade and supplier finance providers | Supplier invoices paid on the buyer's behalf (a payables product) | Importers and businesses buying stock on terms | Repaid over weeks or months; not receivables finance | Funding before an invoice, below |
| Government lender for Indigenous-owned businesses | Invoice finance for businesses at least 50 per cent Indigenous-owned | Eligible businesses with at least two years of profitable trading and at least $500,000 in annual credit sales | Run by Indigenous Business Australia; eligibility-based, terms on the program page | Program listing on business.gov.au |
Sources: provider pages listed under the published-terms table below, read 7 October 2026; business.gov.au, Key financial terms, last updated 9 July 2024; business.gov.au, Invoice finance program, last updated 14 August 2025. Read 7 October 2026.
Which banks and specialist companies provide invoice finance in Australia?
NAB and Westpac are two major-bank examples; ScotPac, Earlypay, Moneytech and Fifo Capital are examples of non-bank finance providers. The providers below are named for comparison, not ranked or presented as a complete market directory. A provider's product, minimum and eligibility rules may change, so confirm the applicable facility directly before applying.
| Provider | Published positioning or eligibility | What to verify before applying | Official product information |
|---|---|---|---|
| NAB | More than $1m annual turnover and at least 12 months trading; B2B terms up to 120 days | Applicable purchase charge, credit policy and security package | NAB invoice finance |
| Westpac | At least $4m annual turnover, limits from $1m and multiple business customers | Qualifying ledger, fees, facility availability and integrations | Westpac invoice finance |
| ScotPac | At least six months trading, B2B transactions and $10,000 in monthly invoices | Eligible industries, debtor concentration, costs and notification | ScotPac invoice finance |
| Moneytech | Published invoice-finance limits from $500,000 to $25m; tailored pricing and B2B invoices | Do not confuse this product with its other funding products; ask about the specific facility | Moneytech invoice finance |
| Earlypay | Offers specialist invoice-finance products; terms depend on product and credit assessment | Minimum facility, eligible invoices, fee schedule and guarantees | Earlypay invoice financing |
| Fifo Capital | Provides invoice financing, including selective invoice solutions | Individual invoice eligibility, total transaction cost, assignment and collection method | Fifo Capital invoice finance |
Important: Published eligibility is not an approval commitment. Rates are not shown because comparable lender-specific quotes were not available. This is not a claim that these firms are on Switchboard's panel or that any particular offer will be accessible through Switchboard.
Who is the best invoice finance provider for a small Australian business?
There is no universally best invoice finance company. A small business with a diversified debtor ledger may begin with a specialist or software-led provider, while a business with a larger established ledger may compare bank and specialist terms. A business with one creditworthy customer should ask about selective invoice finance rather than assuming a whole-ledger debtor finance facility will accept its concentration. The best offer is the one that accepts enough invoices, provides enough usable cash, leaves adequate margin after fees and has acceptable recourse and exit terms.
How do the provider types differ on what they will fund?
The provider type sets the terms before the lender does: banks publish turnover floors and confidential facilities, specialists publish ledger or monthly invoice floors and the fastest setup, platforms publish software requirements, and spot funders publish per-invoice limits.
Eight criteria decide which type will take a ledger: the advance band, the facility size, the minimum turnover or ledger, months of trading, whether property security is needed, whether the facility is disclosed to your customers or kept confidential, whether it syncs with your accounting software, and how fast money moves. Every type lends against your accounts receivable; what differs is the gate. For how the two collection models work, see confidential and disclosed facilities explained.
| Criterion | Major bank divisions | Non-bank specialists | Fintech and software-led funders | Spot and selective funders |
|---|---|---|---|---|
| Published maximum advance | Up to 80 to 85 per cent | 80 to 85 per cent; one publishes up to 95 on its debtor finance page | Up to 80 per cent at one, product-dependent; verify current product page | Up to 80 per cent |
| Facility size as published | Limits from $1 million at one bank; others not stated | $50,000 to $10 million at one; up to $200 million at the largest | Product-specific; see the named provider comparison | From $10,000 to over $1 million at one |
| Minimum turnover or ledger as published | $1 million annual turnover at one bank, $4 million at another | $10,000 of invoices a month at one, a $100,000 ledger at another | About $10,000 of unpaid invoices | About $10,000 of monthly turnover |
| Minimum trading | 12 months at one bank; others not stated | 6 months at two specialists | 6 months, company or trust only, at one | 12 months at one spot funder |
| Property security | Not required in most cases | Not required in most cases | Not required | Not required |
| Disclosed or confidential | Confidential where stated | Both; confidential usually for stronger ledgers | Not always stated | Disclosed or undisclosed |
| Accounting software | Xero, MYOB or QuickBooks at one; MYOB or Xero at another | Xero and MYOB common | Connection to your accounting software required | Not stated |
| Speed as published | No funding time published; one describes quick access | Funds in as little as 24 hours after approval at several | Varies by provider, underwriting and software integration | Same business day once approved; 24 hour setup at one |
Sources (each provider is named only as the publisher of its own product page, never as a recommendation): NAB Invoice Finance, read 7 Oct 2026, which states "In most cases, no real property security is required"; CommBank Stream Working Capital, current as at 5 Nov 2025, read 7 Oct 2026; Westpac Invoice Finance, modified 16 Sep 2026, read 7 Oct 2026; ScotPac invoice finance and ScotPac debtor finance pages, read 7 Oct 2026; Earlypay invoice financing, read 7 Oct 2026 (the page states 80 per cent, sometimes 90, and a $50k to $10M facility range in its FAQ; the table uses 80 per cent and that range); Octet debtor and invoice finance, modified 29 Sep 2026, read 7 Oct 2026; Moneytech invoice finance, updated 17 Jun 2026, read 7 Oct 2026 (currently states $500,000 to $25 million for its invoice finance product); Waddle, how it works, read 7 Oct 2026; Fifo Capital invoice finance, read 7 Oct 2026 ($10K to $1M+ facilities); Hermes Capital invoice finance and Hermes Capital confidential discounting pages, modified 14 Apr 2025, read 7 Oct 2026. Terms as published on 7 October 2026; providers change them without notice.
Indicative, from the Switchboard lender panel as read on 7 October 2026
What we see across panel and market providers on business-purpose, business-to-business ledgers, as at 7 October 2026 (we check these by 7 November 2026 and monthly after):
- Advance: typically 70 to 90 per cent of eligible invoices, set by debtor quality and concentration, not by the provider's headline.
- Cost: a per 30 day norm of around 1.25 to 3 per cent of invoice value across the category; a band, not a quote, and it moves with structure and debtor days.
- First drawdown: as fast as 24 to 48 hours once onboarded, never a promise.
- Setup: typically 3 to 10 business days, because the ledger and the debtors are verified first.
- Most common declines: consumer debtors, a single debtor above around a third of the ledger priced at the bottom of the band and around 40 to 50 per cent declined unless a concentration carve-out is agreed (see how a debtor finance limit is set), disputed or contra invoices, construction progress claims at most funders, and ledgers where the ATO portal shows an unmanaged debt.
These are indicative observations, not a quote, an offer, a rate you will receive or a likelihood of approval. Your terms depend on your debtors and your facility.
Our page on what invoice finance lenders on our panel accepted and charged records the panel view of the same criteria, updated as deals settle.
Why does the advance rate differ between providers?
The advance you are offered is set by your debtors, not by the provider's headline. A provider with a high published maximum will advance less against a ledger concentrated in one customer, slow payers or debtors it cannot verify, and more against a spread of creditworthy business customers on short terms. The published advance rate is a ceiling, and in our broking the gap between ceiling and offer is almost always explained by the debtor book.
Which invoice finance option fits your cashflow problem?
Start with what is causing the shortage of cash. Invoice finance can bring forward payment on eligible invoices already issued, but it cannot automatically fund quotes, purchase orders, work not yet completed or customers who will not pay. The table connects the problem a business owner searches for with the next decision.
| Your situation | What to check first | Likely next step |
|---|---|---|
| Customers pay in 60 to 90 days, but wages are due now | Have valid, undisputed B2B invoices been issued and accepted? | Compare whole-ledger and selective invoice finance, plus the cost of keeping funds outstanding for the full payment period |
| One customer accounts for nearly all invoices | Will a provider accept concentration in that debtor? | Ask about selective finance and debtor-specific limits; do not rely on the standard advance-rate headline |
| A new contract needs materials before the first invoice | Does the business have existing eligible invoices or only an order? | Compare trade finance, supplier finance or a line of credit for the pre-invoice stage |
| A construction head contractor owes progress payments | Is the claim certified, unconditional and free of offsets or retentions? | Seek a specialist that expressly considers progress claims; mainstream invoice finance can exclude them |
| ATO debt or a payment plan is already in place | Is the tax debt managed and are any garnishees or competing security claims present? | Disclose it before applying; seek tax advice and compare realistic lender policy rather than assuming approval |
| An existing bank has all-assets security | Does its security cover receivables and proceeds? | Resolve consent, priority or release before scheduling first drawdown |
| A customer is disputing the amount or refusing payment | Is the invoice actually enforceable and eligible? | Resolve the dispute; discuss recourse and reserve requirements rather than assuming the funder absorbs the loss |
Can invoice finance fund a contract before an invoice is issued?
Usually not. Mainstream invoice finance depends on an existing eligible receivable. If you must pay workers or suppliers before you can issue an invoice, look at a business line of credit or, for eligible procurement, trade and supplier finance. Funding one stage does not guarantee the next stage can be refinanced.
How much cash will I actually get from $100,000 in unpaid invoices?
If all $100,000 of invoices are eligible and the lender approves an 80% advance, the gross advance is $80,000 and $20,000 is initially held back. If $15,000 is excluded because of disputes or debtor limits, the eligible value falls to $85,000 and the 80% gross advance falls to $68,000, before fees and any reserves. When customers pay, the remaining balance is reconciled and released subject to the facility agreement. This is an illustration, not an offer.
Which businesses and invoices do providers exclude, and who takes them?
Mainstream Australian invoice-finance facilities normally fund invoices owed by businesses rather than consumers. Beyond that, exclusions differ, and one provider may consider a ledger that another declines.
Which invoices can most invoice finance providers fund?
- B2B invoices to creditworthy Australian businesses
- Completed work or delivered goods
- Trade terms of roughly 30 to 90 days
- A clean ledger with a spread of customers
- An ABN or ACN and six to twelve months of trading
Which invoices are usually excluded or specialist-only?
- Consumer debtors
- Construction progress claims and retention, at most funders
- One debtor making up a large share of the ledger
- Disputed or contra invoices
- Pre-invoice or milestone billing
- New ABNs under six months, at most types
- Ledgers with an unmanaged ATO debt
Specialist progress-claim funders take construction work the whole-ledger providers will not; our guide covers which funders take progress claims. Spot funders suit a business with one strong debtor whose ledger would fail a concentration test, which is the territory of spot and selective invoice finance. How far each provider type tolerates one large customer is set out in our note on debtor concentration limits, and the wider ledger review in what lenders read in a debtor book.
Tax debt changes the answer more than most owners expect. The ATO can report a business tax debt to credit reporting bureaus where at least $100,000 is overdue by more than 90 days and the business is not engaging, after 28 days notice (ATO, disclosure of business tax debts, last updated 15 October 2025). A payment plan keeps the business engaged but does not stop the cost: the ATO states that "Tax debts on a payment plan continue to accrue GIC, which compounds daily" (ATO, payment plans, last updated 24 February 2026). The ATO can also issue a garnishee notice to businesses or individuals who owe you money, which includes your customers (ATO, garnishee notice, last updated 5 January 2026), so a funder lending against those same customers will ask about tax debt early; our guide to how an ATO garnishee notice works covers the notice itself. What we see is that banks rarely fund through an ATO arrangement, while some specialists will where the ledger is strong and the plan is current.
Do invoice finance providers take new ABNs?
Mostly not until some trading history exists. Published trading floors run from six months at the specialists and platforms to twelve months at one bank and one spot funder, and a few spot and specialist funders will look at a strong first customer earlier, because a large creditworthy debtor carries much of the risk.
If you are not sure which side of these lines your ledger sits, you can check your eligibility before you approach anyone.
How is invoice finance priced by each provider type?
A facility is priced on two charges, a discount on the funds drawn and a fee on the facility or the invoices, while a spot advance is priced on one per-invoice fee; the headline number a provider publishes is rarely the whole cost.
Whole-ledger facilities (some providers say whole-of-ledger), at a bank or a specialist, typically add an establishment fee, a minimum monthly fee and audit or ledger review fees to those two charges. Selective facilities charge on the invoices you choose. A spot advance usually folds everything into one fee on the face value of the invoice. Across the twelve provider pages we read on 7 October 2026, only one publishes a rate range, and every bank publishes fee types without figures, so this guide sets out structure rather than rates.
| Fee | Whole-ledger facility (bank or specialist) | Selective facility | Spot advance | Calculated on |
|---|---|---|---|---|
| Discount or interest charge | Yes, daily on funds drawn | Yes, on funds drawn | Built into the per-invoice fee | Funds in use and days outstanding |
| Service, line or facility fee | Yes, monthly or annual | Sometimes | No | Facility limit or invoice value |
| Per-invoice or purchase fee | Sometimes, on gross invoices purchased | Yes | Yes, the main charge | Face value of each invoice |
| Establishment or setup fee | Yes, at most providers | Sometimes | Sometimes | Facility limit, one-off |
| Minimum monthly fee | Common | Sometimes | No | Fixed amount if usage is low |
| Audit, ledger review or drawdown fees | Common | Sometimes | Rare | Per event |
| Early termination or notice fee | Common with a minimum term | Sometimes | No | Remaining term or fixed amount |
Sources: fee types as published on the provider pages listed under the published-terms table above, read 7 October 2026; business.gov.au, Key financial terms, last updated 9 July 2024. No provider publishes a full fee schedule; figures are not shown because only one of the twelve provider pages read publishes a rate range.
Government guidance says factoring "can be quite expensive compared to traditional financing options" (business.gov.au, updated 9 July 2024), which is a characterisation, not a rate. The longer your trade terms, the longer funds stay drawn and the more the discount charge accumulates.
What is the all-in annualised cost of invoice finance?
Add every fee you would pay over a year, then divide by the average amount of funding you actually have in use. That effective annual cost, which some providers call the effective annual rate, is the only number that compares a two-charge facility with a one-fee spot advance on equal terms. Our guide to working capital loan costs runs the same method across other cash flow products, and what an invoice finance facility costs covers the product's own fee list.
Worked example: which invoice finance offer is actually cheaper?
Compare cost against the actual cash accessed and the number of days it remains outstanding. The following two fictional structures are deliberately simplified: they are not rates advertised by any provider, and neither includes bad-debt losses, variations in utilisation or additional legal costs.
| Comparison | Illustrative offer A | Illustrative offer B |
|---|---|---|
| Initial advance | 80% = $80,000 | 85% = $85,000 |
| Charge structure | 1.5% per 30 days on $80,000 advanced | 2% per 30 days on $100,000 invoice face value |
| 60-day financing charge | $2,400 | $4,000 |
| Other illustrative charge | $300 facility fee | $0 additional |
| Total 60-day cost | $2,700 | $4,000 |
| Cost divided by initial advance for 60 days | 3.375% | 4.706% |
Offer B advances $5,000 more on day one, but costs $1,300 more for the illustrated 60-day period. That does not establish which real facility is better: compare the maximum eligibility, funding frequency, minimum monthly charges, concentration limits, recourse, customer notices, and exit costs. A simple annualised rate for one invoice can also be misleading if the business only draws occasionally.
What happens if the customer does not pay the financed invoice?
In a recourse arrangement, the business typically remains responsible if the customer fails to pay, and the provider may debit reserves, reduce future availability or require repurchase or repayment according to the agreement. Non-recourse protection, where offered, may cover only defined debtor insolvency and may exclude disputes, contractual offsets, fraud or late payment. Ask for the exact default, dispute, dilution, guarantee and collection provisions before accepting an offer.
When is a bank invoice finance facility the right answer, and when is a non-bank?
A bank facility is the right answer when the business clears the bank's turnover floor, can live with annual reviews and covenants, and wants to compare potentially competitive bank pricing; a non-bank or platform is the right answer when the business has been declined, has ATO arrears, needs funds this week, or cannot give the bank what it wants.
When does a bank invoice finance facility fit?
- Turnover clears the bank's published floor
- Financial statements are current and the business is profitable
- You can live with annual reviews and covenants
- You want the facility kept confidential from customers
- The cheapest money matters more than speed
When does a non-bank or platform provider fit?
- The bank has declined, or turnover sits under its floor
- There is an ATO arrangement in place
- Funds are needed this week
- Trading history is short
- The bank wants property or covenants you cannot give
The Banking Code of Practice gives small business customers extra protections, but only with banks that subscribe; it is a condition of ABA membership that "member banks with a retail presence in Australia sign up to the Code". Under the 2025 Code, a small business is one with turnover under $10 million in the previous financial year, fewer than 100 full-time equivalent employees and less than $5 million in total debt, excluding National Credit Code debt (Banking Code of Practice, effective 28 February 2025). Even inside the Code, paragraph 91 lists invoice discounting among specialised lending where a bank may still use financial indicator covenants as a trigger for default action. A non-bank invoice financier is not a subscriber at all, so the protection question becomes AFCA membership, covered below.
The market has been moving the non-bank way: the RBA reported that the "non-bank share of SME lending has increased strongly since the start of 2022", particularly for smaller loans (RBA Bulletin, 23 October 2025), and a later bulletin noted the available data probably understate the non-bank share (RBA, recent changes in credit markets, 26 February 2026). That finding covers SME lending generally, not invoice finance specifically. If the problem is lumpy cash rather than slow debtors, a business line of credit or the options in our working capital loans guide may fit better than any invoice provider.
What do banks ask for that non-banks do not?
Banks ask for more history and more paper: a turnover floor, current financial statements, covenants tested at review, and sometimes property or a balance sheet test. Specialists and platforms lean on the ledger itself, verifying debtors and invoices instead, which is why they can move faster and take businesses a bank will not. Our non-bank lender policy matrix shows how that plays out on the panel.
How do you compare two invoice finance offers, and what does a broker add?
Compare two invoice finance offers on the effective annual cost and the exit terms, not on the advance rate, because the advance rate is set on your debtors and the fees are set on the structure.
- Confirm the facility type. Whole ledger, selective or spot; the fee structure follows from it.
- List every fee by name. Discount, service, per-invoice, establishment, minimum monthly, audit and termination.
- Annualise the fixed fees. Monthly and annual fees over twelve months, plus the setup fee.
- Add the discount on average drawn funds. Use your real average balance, not the limit.
- Divide by average funds in use. That is the effective annual cost, the number to compare.
- Check the advance against your debtor mix. Test it on your actual customers and concentration, not the headline.
- Check disclosed or confidential. Know what your customers will see on the invoice and who collects.
- Check the exit. Notice period, minimum term and termination fee.
- Check the security. General security agreement, director guarantee, PPSR registration, and whether a deed of priority is needed with your bank.
- Check AFCA membership. And how the provider handles complaints before they reach AFCA.
A broker earns its place three ways: knowing which provider type takes which ledger before you are declined, running the effective annual cost across offers on the same basis, and managing the release or deed of priority with your bank so the new facility can start. In our broking, the deed of priority is the step that most often sets the timetable. Having your paperwork ready helps too; here are the documents an invoice financier asks for.
Switchboard is paid a commission by the lender when a facility settles; the amount and who pays it are disclosed before you sign, and ask us to explain the remuneration and how alternative offers compare. Our guide to how business finance brokers are paid covers commission, trail and what to ask. If you hold two offers you cannot line up, or a bank has said no, that is the point to arrange invoice finance through Switchboard.
How do you check an invoice finance provider before you sign?
Check five things a provider cannot dress up in its marketing: the legal entity named on the facility agreement, its membership on the AFCA register, the minimum term and termination fee, whether the security covers the whole ledger or only the invoices you fund, and reviews that describe leaving the facility, not just how fast it paid. Reviews that only praise speed tell you about week one; the ones that mention fees and exit tell you about year two. If you found the provider through a comparison site, ask whether that site is paid per enquiry, because some sell your enquiry on to lenders or brokers rather than ranking providers on merit.
What happens after you choose an invoice finance provider?
After you accept an offer, the provider verifies your ledger and debtors, registers its security, and, in a disclosed facility, notifies your customers; then you upload invoices and draw against them as each is approved. Setup takes days rather than hours, because the verification comes first; the indicative timings are in the panel note above.
- Indicative terms. A limit, an advance rate and a fee structure, all subject to verification.
- Ledger review. Your aged receivables, debtor list, recent financials and ATO account position are read against the provider's policy.
- Debtor verification. The provider checks that a sample of invoices is real, owed and undisputed; in a disclosed facility that can include contacting your customers.
- Security. A security agreement over the receivables, registered on the PPSR, usually with a director guarantee, and a deed of priority if your bank already holds security.
- Notice to customers. In a disclosed facility your customers receive a notice of assignment telling them to pay into the provider's account; in a confidential one nothing changes for them.
- First advance, then the running cycle. You upload invoices, the advance lands, the customer pays, and the provider releases the balance less its fees.
Will my customers know I am using invoice finance?
Only if the facility is disclosed. A disclosed facility changes the payment details on your invoices and the provider may chase overdue accounts, so customers will see it; a confidential facility leaves invoicing and collections with you, which is why providers reserve it for stronger ledgers, as set out in how the provider types differ.
What changes in the business once the facility is running?
Cash arrives sooner, but what you can draw moves with the ledger every week. Credit notes and disputed invoices reduce availability, one customer growing past the concentration limit caps what that customer's invoices can fund, and the unadvanced balance is held back until each invoice is paid. In our broking, the owners who get the most from a facility reconcile weekly and plan their exit before they sign, because leaving means repaying the funds in use, usually by having the next funder pay out the current one on the same day.
Can you switch or combine invoice finance providers?
You can switch invoice finance providers, and in limited cases run two, but only once the outgoing funder's security is released or ranked, because the new funder will not advance against invoices another lender has registered an interest in.
Most facilities carry a notice period and many a minimum term, with an early termination fee if you leave inside it. Read both before you sign, not when you want to leave.
The outgoing funder will usually hold a general security agreement or a specific security over the receivables, registered on the Personal Property Securities Register. The new funder will want that registration released, or ranked behind it, before it advances. Where a bank holds a general security agreement over all the business's assets, the usual answer is a deed of priority or a release of the receivables negotiated with the bank; see when your bank already has security.
The PPSR explains why this can work: provided certain notice is given, the PPSA lets those advancing funds against a business's invoices or debts obtain priority over other registered security interests linked to those invoices or debts (PPSR, financial services, read 7 October 2026). Whether priority applies in your case, and how a deed is drafted, is a question for your solicitor.
Once the outgoing facility is repaid, the funder should end its PPSR registration as soon as practicable, generally within 5 business days of the security interest ending (PPSR, end a registration, read 7 October 2026). If a registration lingers, contact the secured party named on it; a new funder will usually not advance until it is gone or ranked.
Can you have two invoice finance funders at once?
Usually not on the same ledger. Two funders only work where the debtors or ledgers are cleanly split, for example one division or one customer group each, and both funders agree in writing and register their interests to match.
Are invoice financiers regulated, and where do you complain?
Business-purpose invoice finance sits outside the National Credit Code, so your complaint route depends on whether the provider is an AFCA member: banks are, most specialists are, some private funders are not.
The National Credit Code covers credit wholly or predominantly for personal, domestic or household purposes, or to buy, renovate or improve residential property for investment (ASIC, National Credit Code, last updated 1 August 2025). Invoice finance for a business falls outside that perimeter, and ASIC's guidance on commercial loan disputes says commercial loans, including loans to small businesses, have the lowest level of legal protection (ASIC INFO 207, updated April 2024). Unfair contract terms rules and the ASIC Act's unconscionable conduct provisions still apply.
Calling a facility a business loan does not make it one. ASIC announced $515,000 in penalties against a business lender and a loan introducer that failed to establish that loans presented as business loans actually were, saying the borrowers "did not benefit from the important protections available under the Credit Code" (ASIC 25-301MR, 12 December 2025).
AFCA can hear a small business complaint where the business has less than 100 employees and the credit facility does not exceed $6,317,000, with compensation capped at $1,263,000, for complaints from 1 January 2024 (AFCA monetary limits, indexed; read 7 October 2026). The catch is membership: "AFCA can only resolve complaints about financial firms that are members of AFCA" (ASIC INFO 207, updated April 2024). Check the AFCA member register before you sign, and note that AFCA does not review a lender's credit-risk assessment.
Comparison and lead-generation sites sit inside the same frame. In September 2026 ASIC began proceedings against the operator of up to 70 loan and insurance comparison sites, alleging its comparison claims were misleading; the allegations have not yet been decided by a court (ASIC 26-221MR, 18 September 2026). Treat any site's ranking of providers as marketing unless it discloses how it is paid.
Where do you complain about an invoice finance provider?
Start with the provider's internal dispute resolution; for licensed firms, ASIC RG 271 generally requires a standard complaint to be resolved within 30 calendar days, though some credit complaints run to different timeframes. If that fails and the provider is an AFCA member, take it to AFCA; if it is not, report misconduct to ASIC and take legal advice. Our guide on how invoice finance is regulated covers the product's legal frame.
Four provider types fund invoice and debtor finance in Australia, and they divide the market more by what they will accept than by what they charge. Banks publish turnover floors and confidential facilities; specialists publish ledger floors and the fastest setup; platforms run off your accounting software; spot funders take one invoice at a time. The advance you are offered comes from your debtors, the cost comes from the structure, and the complaint route depends on AFCA membership.
Key takeaway: compare providers on the effective annual cost, the exit terms and AFCA membership, not on the headline advance rate.Frequently Asked Questions
Yes, if your business invoices other businesses on trade terms and those customers are creditworthy. Which provider type fits depends on your turnover, trading history, how spread your debtors are and your accounting software. Mainstream facilities generally require invoices owed by business customers, not ordinary consumer receivables. See which businesses and invoices providers exclude.
Only when the saving or the extra availability outweighs the termination fee, the setup fee and the disruption of new notices of assignment to your customers. Compare both offers on the same basis, cost divided by cash advanced for the days outstanding, and check the minimum term and notice period in your current agreement before giving notice. Work out the effective annual cost of each offer using the ten-step comparison rather than the headline rate.
Yes, with some providers, if you invoice businesses rather than consumers, hold an ABN and have a trading history. Other providers fund only companies or trusts. Because a sole trader is personally liable for the business, the provider will assess you personally, much as it would take a director guarantee from a company owner. See the trading history providers ask for.
Yes, once you have served the notice period and the outgoing funder has released its security and PPSR registration over your receivables. If a bank holds a general security agreement over the business, the new funder may also need a deed of priority. Leaving inside a minimum term usually triggers a termination fee. See switching or combining providers.
Usually not on the same ledger. Two funders can work only where the ledgers or debtors are split cleanly between them and both agree in writing and register their interests to match. In practice most businesses run one receivables funder and use a different product, such as a line of credit, for other needs. See when two funders can work.
Some specialists do, where the ledger is strong and the debt is under a current payment plan; banks may apply stricter credit and arrears policies. The ATO can report large, long-overdue business tax debts to credit bureaus when a business is not engaging, and interest keeps compounding on a payment plan, so providers look closely at how the debt is managed. See when a bank or a non-bank fits.
Published trading-history criteria vary substantially across providers. Some spot and specialist funders will consider an earlier start where the business has one strong, creditworthy customer, because that debtor carries much of the risk. The published trading floors by provider type are in the table under how the provider types differ.
Most whole-ledger providers exclude construction progress claims and retention, because the amount owed can be disputed or offset until the work is certified. A small number of specialists fund them under their own rules. Our guide to progress claim finance for builders sets out who takes them and how.
Business-purpose invoice finance sits outside the National Credit Code, so you have fewer protections than with consumer credit. Your complaint route depends on the provider: use its internal dispute resolution first, then AFCA if the provider is a member, and otherwise report misconduct to ASIC. Unfair contract terms rules still apply. See how invoice financiers are regulated.
Yes. Several major Australian banks publish invoice finance products, usually run confidentially and with turnover floors higher than most specialists publish. They ask for more financial history and covenants than non-bank providers, with pricing that must still be compared on a total-cost basis. See what banks ask for that non-banks do not.
No. Providers fund against your ledger rather than through a local branch, so most fund businesses Australia-wide, whether you are in Melbourne, Sydney, Brisbane or a regional town. What decides the answer is the quality and spread of your debtors and the provider's turnover or ledger floor, set out in the published terms by provider type.
Going direct works if your ledger is clean and you can compare offers on effective annual cost yourself. A debtor finance broker helps most when a bank has declined you, there is an ATO arrangement, existing security has to be released or ranked, or you want several offers on one basis. A broker is paid commission by the lender, which should be disclosed before you sign. See what a broker adds.
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