Accounting and Advisors

The broker's guide to invoice finance: when to refer, when not to, and what your client actually needs

By FundTap Team ·15 May 2026

Brief for Molly: Full 1,200-1,800 word body needed. Audience is finance brokers and advisers in AU and NZ. Schema and FAQs are complete. Use the H2 structure below.

In short

Invoice finance is the right tool for a specific client profile: B2B businesses that invoice and wait. This guide helps brokers identify that profile quickly, understand when invoice finance beats an overdraft or term loan, and know what to prepare before making an introduction.

Last reviewed 21 August 2026

The client profile that fits invoice finance

[Write: B2B businesses that invoice other businesses and wait 20-60 days for payment. They have costs that arrive before payment. They are growing, not distressed. They are not on cash-on-delivery terms. They don't have to give up equity or property security.]

Client signals that say refer now

[Write: Five signals a broker should recognise: client mentions waiting on a big invoice to pay wages, client has turned down a contract because they couldn't resource it, client is using a personal credit card to bridge cashflow, client mentions their payment terms are 60+ days, client asks if they can get an overdraft increase. Each of these is an invoice finance referral opportunity.]

When invoice finance is the right call vs overdraft, term loan, or asset finance

[Write: Include the comparison table from article-5-draft.json. Invoice finance for B2B timing problems. Overdraft for irregular short-term buffers. Term loans for one-off capital. Asset finance for equipment. Invoice finance is the only one that scales automatically with revenue.]

Product	Best for	Scales with revenue?	Security required?	Cost structure
Invoice finance	B2B businesses waiting on invoices	Yes	No (in most cases)	% per invoice, per draw
Overdraft	Short-term buffer, irregular draws	No (fixed limit)	Often for larger amounts	Interest on balance drawn
Term loan	One-off capital need	No	Yes typically	Fixed repayments
Asset finance	Equipment or vehicle purchase	No	Asset as security	Fixed repayments

How commission and referral pathways work

[Write: FundTap pays referral fees to registered partner brokers when they introduce a client who is approved and funded. Fee paid once client draws their first advance. Brokers register via the FundTap partner programme. Link to https://fundtap.co/partners/program and https://fundtap.co/roles/brokers-advisers]

What to send the client before they apply

[Write: Three things speed up the assessment: the client's average monthly invoicing value, the industry they operate in, the typical payment terms their clients are on. If the client is on Xero or MYOB, note that too. FundTap contacts the client directly from there.]

Common broker questions answered

[Write: Q: How long does approval take? A: Typically same day for eligible clients. Q: Does the client need to use all their invoices? A: No, selective invoicing. Q: Is there a minimum facility size? A: No. Q: Who manages the client relationship? A: FundTap manages the ongoing relationship but the broker maintains their own client relationship.]

Frequently asked questions

When should a broker refer a client to invoice finance?

Refer to invoice finance when the client's problem is cashflow timing rather than capital adequacy. The signals are: the client invoices other businesses and waits 30 days or longer to be paid, they have costs that arrive before payment does, and they are otherwise a healthy business with a growing revenue base.

How does referral commission work for brokers with FundTap?

FundTap pays a referral fee to registered partner brokers when they introduce a client who is approved and funded. The fee is paid once the client draws their first advance. Contact FundTap via the partner programme page for current commission rates and terms.

What information should a broker send to FundTap before a client applies?

A warm introduction with three pieces of information speeds up the assessment: the client's average monthly invoicing, the industry they operate in, and the typical payment terms their clients are on. If the client is already using Xero or MYOB, note that too.

Is invoice finance better than an overdraft for my client?

For a growing B2B business with a cashflow timing problem, invoice finance usually scales better than an overdraft. An overdraft has a fixed limit. Invoice finance is based on the value of the invoices being funded, so the available facility grows as the client's invoicing grows. Invoice finance also does not require property security in most cases.

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The broker's guide to invoice finance: when to refer, when not to, and what your client actually needs

The client profile that fits invoice finance

Client signals that say refer now

When invoice finance is the right call vs overdraft, term loan, or asset finance

How commission and referral pathways work

What to send the client before they apply

Common broker questions answered

Frequently asked questions

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