TL;DR: Yes, sole traders can use invoice finance. If you invoice business clients on credit terms and your cash flow is affected by slow payment, invoice finance can help. With Fundtap, there is no minimum turnover, no lock-in, and the process is simple.

Can Sole Traders Actually Use Invoice Finance?

Traditional invoice finance providers often require minimum annual turnover of $500,000 or more, which excludes most sole traders. Fundtap has no minimum turnover requirement. If you invoice business clients through Xero, MYOB, or QuickBooks, you can use Fundtap regardless of your business size.

When Invoice Finance Makes Sense for Sole Traders

Invoice finance is worth considering if:

• You invoice business clients on 14–60 day terms
• You have regular outgoings (rent, insurance, equipment leases, subcontractors) that cannot wait
• Slow payment limits your ability to take on new work
• You do not want to take on a business loan or use personal savings to cover gaps

When It May Not Make Sense

Invoice finance is less useful if:

• Your clients pay immediately or within a few days
• You primarily work with consumers (B2C) rather than businesses
• Your cash flow gap is caused by low revenue rather than slow payment

How It Works for Sole Traders

1. Connect your Xero, MYOB, or QuickBooks account to Fundtap
2. Select the invoices you want to fund
3. Receive an advance within hours
4. When your client pays, the advance is settled

The fee is a single transparent rate from 4% per invoice. No monthly fees, no lock-in contracts, no minimum volumes.

Is It Worth the Cost?

A 4% fee on a $5,000 invoice costs $200. Whether that is worth it depends on what that $5,000 of immediate cash enables you to do. If it lets you take on a new job, meet a financial obligation, or avoid a more expensive alternative (like a high-interest loan), the return can far exceed the cost.

See how Fundtap works →