Invoice finance · Cash flow finance
Invoice finance for Cash flow finance
Cash flow finance is short-term business funding that covers the gap between paying costs and receiving revenue, used for wages, suppliers and tax rather than for buying assets.
How a invoice finance works for Cash flow finance
Where the gap is caused specifically by customers taking 45 days to pay, invoice finance addresses the cause directly. Each invoice is advanced when issued, so the cash arrives with the work rather than months later. It scales automatically as you grow, which no term loan does. It requires a business-to-business debtor book — retail and trade-counter businesses have nothing to advance against — and pricing depends heavily on the quality and spread of the customers who owe you.
The cash-flow pattern we plan around
Costs falling due weekly or fortnightly against revenue arriving on 30–60 day terms, with the gap widening as the business grows.
What cash flow finance typically fund
- Wages and superannuation between invoice payments
- Supplier and trade accounts falling due
- BAS, PAYG and quarterly tax obligations
- Bridging a seasonal trough
Invoice finance for Cash flow finance: the numbers
| Typical amounts | $20,000 – $5,000,000 |
|---|---|
| Term | 1–12 months |
| Indicative rates | 8% – 18% p.a. |
| Repayments | Settled when the customer pays each invoice |
| Speed | 24–48 hours per invoice once set up |
| Documents cash flow finance usually need | ABN, GST registration and 6–12 months of bank statements · Aged receivables and payables reports · Most recent BAS lodgements |
Rates shown are indicative ranges observed across our lender panel for the period stated. They are not an offer or quote. Your rate depends on your business, the lender, the amount, the term and the security offered. The lender makes the final credit decision.
Key terms
Cash flow finance
Cash flow finance is short-term lending used to cover operating costs during the gap between outgoings and incoming revenue, typically repaid within twelve months and not used to purchase assets.
Structural versus one-off gap
A structural gap recurs every trading cycle because of payment terms, and suits a revolving facility; a one-off gap arises from a single event and suits a term loan with a defined end date.
What is invoice finance?
Invoice finance (also called debtor finance or receivables finance) advances a percentage of an unpaid invoice’s value now, with the remainder paid when the customer settles, minus the financier’s fees.
Invoice finance vs invoice factoring
Factoring sells the invoice to the financier who collects from your customer; invoice discounting keeps collections with you and is usually confidential. Both are forms of invoice finance.