How Fast Can You Get Funded With Invoice Finance?

How Fast Can You Get Funded With Invoice Finance?

Speed is one of the most important considerations when choosing a funding solution. If you need cash to pay wages on Friday, a solution that takes three weeks is not useful. Here is an honest breakdown of funding timelines.

Traditional Invoice Finance: Days to Weeks

Traditional invoice finance, particularly from banks and established factors, typically involves a multi-step process:

1. Application and assessment: Credit check, business financials review, debtor assessment, typically 2-5 business days
2. Facility setup: Contract, legal review, account setup, typically 3-7 business days
3. First funding: Submit invoice for approval, advance made, typically 1-2 business days after submission

Total time from initial approach to first funds: 1-3 weeks in many cases. Ongoing funding after setup is typically 1-2 business days per invoice.

FundTap: the same day

FundTap is designed for a different timeline:

1. Connect your accounting software: 5-10 minutes. Connect Xero, MYOB, or QuickBooks via standard OAuth process.
2. Account setup and eligibility: Typically same business day, your outstanding invoices are assessed for eligibility automatically.
3. Select and fund your first invoice: Choose the invoice, confirm the funding, receive payment to your bank account. Funds typically arrive the same day on the same business day.

From initial setup to first funds: typically the same day. Ongoing use once connected: hours per invoice.

What Affects Funding Speed?

Several factors influence how quickly funds arrive:

• Your bank's processing speed: Same-day bank transfers depend on your bank's systems and cut-off times.
• Invoice eligibility: Invoices against well-known, creditworthy businesses are typically approved faster.
• Time of day: Requests made earlier in the business day are more likely to result in same-day funding.
• New vs existing customer: First-time setup takes longer than subsequent use once the connection is established.

The Practical Implication

If you have an urgent cash need, payroll, a supplier payment, a deposit on a new contract, FundTap's timeline makes it a practical solution. Traditional invoice finance's timeline does not serve urgent needs.

For non-urgent situations, both can work. But if speed matters, and for most working capital needs, it does, the difference between hours and weeks is significant.

Frequently Asked Questions