Invoice finance basics

Everything you need to know about invoice finance — in plain English, with no jargon.

What is invoice finance?

Invoice finance lets businesses access money from invoices they’ve already raised — before their customers pay. If you invoice other businesses and wait 30, 60 or 90 days to get paid, invoice finance can bridge that gap.

How does it work?

1. You complete work and raise an invoice with your customer
2. Instead of waiting for them to pay, you submit the invoice to an invoice finance provider (like Fundtap)
3. We pay you up to 90% of the invoice value, within hours
4. Your customer pays the invoice as normal — to you, on their usual schedule
5. Fundtap collects the advance plus the fee via direct debit

Is it a loan?

No. Invoice finance is not a loan. You’re accessing money you’ve already earned. There are no fixed repayments, no interest rate, and it doesn’t appear as debt on your balance sheet.

Types of invoice finance

• Selective invoice finance (Fundtap) — you choose which invoices to fund. No whole-ledger commitment, no minimum.
• Invoice factoring — you sell your invoices to a factor who collects from your customers. Customers are notified.
• Whole-ledger finance — you fund all invoices from one or all customers. Usually requires minimum volumes.

For most small businesses, selective, confidential invoice finance (like Fundtap) is the most flexible option.

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