TL;DR: Australian businesses can choose from banks, specialist factoring companies, and fintech platforms for invoice finance. The right provider depends on your turnover, how much flexibility you need, and whether you want to fund your entire ledger or individual invoices. Compare fees, lock-in terms, and funding speed before committing.
What to Look For in an Invoice Finance Provider
The Australian invoice finance market includes traditional banks, specialist providers, and technology-led platforms. Key factors to evaluate:
- Fee structure — Single transparent fee vs. layered costs (service fee + interest + admin)
- Contract terms — Lock-in period, minimum volumes, exit fees
- Whole-ledger vs selective — Must you assign all invoices or can you choose?
- Customer notification — Confidential or disclosed?
- Funding speed — Same-day, next-day, or longer?
- Accounting software — Integration with Xero, MYOB, QuickBooks?
- Industry experience — Does the provider understand your sector?
Types of Invoice Finance in Australia
Bank Invoice Finance
Major Australian banks (CBA, ANZ, NAB, Westpac) offer invoice finance facilities, typically as part of a broader business banking relationship. Minimum turnover requirements are common ($1M+), and setup involves detailed financial assessment. Rates can be competitive for established businesses.
Specialist Factoring Companies
Companies like ScotPac, Bibby Financial Services, and Octet offer dedicated invoice factoring and discounting. These providers serve a range of business sizes and often require whole-ledger assignment and 12–24 month contracts.
Fintech Invoice Finance
Technology-led platforms like Fundtap offer on-demand invoice finance through cloud accounting integration. Select individual invoices, receive funds within hours, and pay a single transparent fee. No lock-ins, no minimums, no whole-ledger requirement.
Why Australian Businesses Choose Fundtap
- On-demand — fund individual invoices when you need to
- Single transparent fee from 4% per invoice
- No lock-in contracts or minimum volumes
- Confidential — customers never notified
- Funded within hours
- Integrates with Xero, MYOB, and QuickBooks
- No property security or personal guarantees required
The best provider depends on your business size and needs. For SMEs wanting flexibility and speed, Fundtap offers on-demand invoice finance with no lock-ins. For larger businesses needing multi-product facilities, traditional providers like ScotPac may suit. Compare fees, contract terms, and minimum requirements.
Costs vary widely. Traditional providers may charge service fees (0.1–0.5% of turnover) plus interest on advances. Fundtap charges a single fee from 4% per invoice with no monthly fees, minimums, or hidden charges.
Yes. Major Australian banks offer invoice finance, typically requiring minimum turnover of $1M+, detailed financial assessment, and ongoing banking relationship. Fundtap has no minimum turnover requirement and offers same-day setup.
Invoice factoring involves selling invoices to a third party who manages collections and notifies your customers. Invoice finance (like Fundtap) is confidential — you retain control and your customers pay you as normal.
Fundtap assesses your customers’ creditworthiness rather than requiring years of trading history. If you have B2B invoices from creditworthy customers, you may be eligible even as a newer business.