A franchisor in Auckland: franchisees on the 20th, the factory paid first

Kit for the franchisees

The business is the master franchisor for a franchise network, run from Auckland. Along with the management fee, it supplies the franchisees with their kit and uniforms, bought in bulk from the maker overseas and sold on.

The franchisees pay for it on the 20th of the month after. That’s how the management fee has always been paid, and the kit is moving onto the same terms.

Paid before it leaves the factory

When they signed up in December 2024, the owner told the FundTap team the kit now had to be paid for before it left the factory overseas, where it had once been bought on terms.

So a bulk order is paid for before it ships, and the franchisees pay for it on the 20th of the month after it reaches them. The bigger the order, the wider the gap, and the price moves with the currency too.

The owner explained that the first kit order they wanted to fund was due before Christmas.

Funding the franchisee invoices

They signed up in December 2024, connected Xero and funded their first invoice that month. The owner picks the invoice, sees the fee before committing, and pays only on what’s funded. The franchisees pay the business on the 20th as they would anyway.

Kit ordered before Christmas

With that first invoice funded in December 2024, the kit order could be paid for before Christmas rather than after the franchisees paid in January. The order could go to the factory on its new terms, and the franchisees’ terms stayed where they were.

Their funding limit was raised in April 2025, and again in August 2026, which was also the busiest month so far with three invoices funded.

Between bulk orders

The kit comes in bulk, and those are the moments the funding is used: 15 invoices since December 2024, seven in 2025 and seven in 2026 to September. Between orders, there’s no fee to pay.

The timeline

1. December 2024 Signed up and connected Xero, with a kit order to pay for before Christmas.
2. December 2024 Funded their first invoice.
3. April 2025 Funding limit raised.
4. August 2026 Funding limit raised again, in the busiest month so far with three invoices funded.

In numbers

• 20th of the month after: when the franchisees pay
• 15 invoices funded since December 2024
• 3 invoices funded in August 2026, the busiest month
• 2 increases to their funding limit

Sound like your business?

The factory wants paying before the order ships, and your customers pay on the 20th of next month. Fund the invoice that covers the order and keep the kit coming.

Fund the next order without waiting on the last one.

Invoice finance for makers and distributors  •  All case studies