How Fast Is Invoice Finance? Timeline From Application to Funding | FundTap

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

Select an outstanding invoice and receive funds the same day. Repayment is automatic on that invoice’s due date by direct debit. You choose which invoices to fund.

Not a traditional loan. You are accessing money you have already earned, on an invoice you have already raised, for one flat fee. Repayment is automatic on that invoice’s due date by direct debit, so there is no fixed weekly or monthly schedule to carry.

FundTap fees start from 4%. No monthly fees, setup fees, or minimum volumes.