Invoice Finance for Sole Traders: Is It Worth It?

TL;DR: Yes, sole traders can use invoice finance. FundTap has no minimum turnover and no requirement to be a company; what matters is that you invoice other businesses (B2B) on credit terms and the invoice is for completed work. A 4% fee on a $5,000 invoice costs $200, and you only pay when you choose to fund an invoice.

Can a sole trader qualify for invoice finance?

Yes. Invoice finance is based on the invoice, not your business structure. If you're a sole trader invoicing other businesses on payment terms, you can usually qualify. With FundTap there's no minimum turnover, no lock-in, and no requirement to register as a company, the key test is that you invoice B2B customers for work already delivered.

What sole traders need to qualify

• You invoice other businesses (B2B). Invoice finance funds business-to-business invoices, not invoices to consumers.
• The work is done. The invoice must be for goods or services already delivered, not work in progress or future milestones.
• Your customer is creditworthy. Funding decisions weigh your customer's ability to pay as much as your own, a strength for sole traders with solid clients.
• You're registered for GST/ABN (AU) or have an NZBN (NZ) and invoice in the normal way.

"Sole traders are often the businesses that feel the cash gap hardest, one big invoice on 45-day terms can lock up everything. The structure of your business doesn't matter to us; the quality of the invoice does. That's what makes this work for a one-person operation."

Shane, Head of Growth, FundTap

How it works for a sole trader

1. Connect your accounting software (Xero, MYOB, QuickBooks) or upload the invoice.
2. Choose the invoice you want to fund, you pick, every time. Nothing is locked in.
3. Receive an advance on the invoice value, with funds in hours (median first fund: 3 days from sign-up; FundTap data, 2026).
4. When your customer pays, the invoice settles automatically. No new debt sits on your books.

What it costs

You pay a single fee on the invoices you choose to fund, from 4%, with no monthly fees and no lock-in. On a $5,000 invoice at 4%, the fee is $200. You only pay when you fund an invoice, so in a quiet month you pay nothing.

FundTap's selective model keeps risk, and cost, low: the average advance is about $32K over roughly 33 days, and the loss rate sits at 0.71% (FundTap data, 2026; loss rate per BNZ presentation 2025).

Why it suits sole traders

• No minimum turnover, you don't need to be at a certain revenue level to start.
• Selective, fund one invoice when you need to, not your whole ledger.
• No debtor notification, your customers don't need to know.
• No new debt, it's an advance against money you're already owed, not a loan against your business.

See how FundTap works → Rated 5★ on Google (117 reviews) · 4.9★ on the Xero App Marketplace (107 reviews).

Frequently asked questions

Can sole traders get invoice finance?

Yes. Invoice finance is based on the invoice, not your business structure. If you invoice other businesses on credit terms for completed work, you can usually qualify, with FundTap there's no minimum turnover and no need to be a company.

Do I need a minimum turnover?

No. FundTap has no minimum turnover requirement. What matters is that you invoice B2B customers for work already delivered.

What does invoice finance cost a sole trader?

A single fee from 4% on the invoices you choose to fund, with no monthly fees or lock-in. On a $5,000 invoice at 4%, the fee is $200.

Will my customers know I'm using invoice finance?

No. FundTap doesn't notify your debtors, your customer relationship and payment process stay exactly as they are.

Is invoice finance a loan?

No, it's not a traditional loan. You're accessing the value of an invoice you've already raised, rather than taking on new debt against your business.

How fast can a sole trader access funds?

Funds arrive in hours once you're set up; the median time from sign-up to first fund is 3 days (FundTap data, 2026).