How funding works

What invoice finance is

Invoice finance is essentially a line of credit based on the invoices a business is owed by its customers. It lets the business borrow against that money, so it doesn't have to wait for invoices to be paid. How much can be borrowed depends on the invoices outstanding and how old they are.

Read what the video shows

An illustration in four steps. A business invoices its customer, and payment isn't due for weeks or months. The business sends the invoice to a finance provider, which pays most of its value upfront. The customer pays the invoice when it falls due. The finance provider then pays the business the balance, less its fees. Illustration only: fees, rates and terms vary between finance providers.

How this estimate works

1. Enter your details. Your name, contact details, company name, ABN and industry.
2. Upload your aged receivables report. This is the Aged Receivables Summary or Aged Receivables Detail report, saved as a PDF from your accounting software. The PDF is processed temporarily and is not kept.
3. Say who you invoice and how. Choose whether you invoice businesses, consumers or a mix of both, and whether your invoicing is for completed work, progress claims, or deposits as well as completed work. If your report is aged by due date, pick the usual payment terms on your invoices.
4. Get your estimate. This website reads the report, works out how old your invoices are, leaves out invoices that are too old to count and customers with a large share of overdue invoices, and applies an advance rate to what is left. The result is an indicative borrowing amount, with a short summary of ageing, concentration and invoicing terms.

What affects the result

• Overdue invoices. The older an invoice is, the less likely it is to be funded.
• Customers with mostly overdue balances. A customer with a large share of its balance overdue is excluded entirely.
• Who you invoice. Invoice finance is only suitable for business to business invoices. Consumer invoices cannot be funded.
• Type of invoicing. Progress claims are funded at a reduced rate. Deposits and related party invoices cannot be funded.

Please note

The estimate is a guide only. It is based on the report you upload and is not an offer of finance or a credit decision. Any actual funding would depend on a review of your invoices and customers.