Invoice Financing for Small Business — NZ & AU Guide
By FundTap Team ·19 May 2026
TL;DR: Invoice financing for small business lets you access cash from unpaid invoices the same business day instead of waiting weeks or months for customers to pay. You connect your accounting software (Xero, MYOB, QuickBooks, Reckon), pick which invoice to fund, and get the money in your bank account the same day. There are no setup fees, no monthly fees, and no lock-ins. For most AU and NZ small businesses with strong receivables, it is the lowest-friction working-capital option.
What is invoice financing for small business?
Invoice financing is a way for small businesses to access cash from invoices that have not been paid yet. Instead of waiting 30, 60, or 90 days for a customer to pay, you sell the right to collect that invoice (or borrow against it) and receive most of the money straight away.
With FundTap, the structure is selective and confidential:
- You pick which invoices to fund. No whole-ledger commitment.
- Your customer is never contacted. No debtor notification.
- Repayment happens automatically when your customer pays the invoice. No fixed instalment schedule.
- Single transparent fee per invoice. No setup fees, no monthly subscription, no early-repayment fees.
How does invoice financing work step by step?
- Connect your accounting software. FundTap integrates with Xero, MYOB, QuickBooks, and Reckon. Real-time sync, no manual data entry.
- Pick an invoice. Browse your unpaid invoices in the FundTap portal. Select the one you want to fund.
- See the cost upfront. The exact fee for that specific invoice is shown before you confirm. Full transparency.
- Funds in your account. Typically the same business day. Often the same day.
- Automatic repayment. When your customer pays the original invoice, FundTap reconciles automatically. You do not have to do anything.
For more on the mechanics, see how invoice finance works.
What does invoice financing cost?
FundTap's fee structure is a single transparent fee per invoice funded, starting from 4%. There are no setup fees, no monthly subscription, no early-repayment fees, and no lock-ins.
Indicative fees on a $30,000 invoice:
| Days to repayment | Approximate fee | Effective rate |
|---|---|---|
| 7 days | ~$1,200 | ~4% |
| 30 days | ~$1,650 | ~5.5% |
| 60 days | ~$2,400 | ~8% |
| 90 days | ~$2,850 | ~9.5% |
See full pricing detail at fundtap.co/pricing.
Who qualifies for invoice financing as a small business?
Eligibility focuses on the invoice, not the business. The main checks are:
- You operate in Australia or New Zealand as a registered business (ABN or NZBN).
- You use Xero, MYOB, QuickBooks, or Reckon.
- You have unpaid invoices to credit-worthy business customers (B2B). FundTap does not fund consumer invoices.
- The invoice is for work already completed or goods already delivered.
- You are not in formal insolvency.
Sole traders, partnerships, companies, and trusts all qualify. See eligibility detail.
How invoice financing compares to other small business funding
| Funding type | Best for | Watch-out |
|---|---|---|
| Invoice financing | Ongoing working capital, businesses with unpaid invoices | Needs B2B customers and accounting software integration |
| Business loan | One-off investments, expansion | Personal guarantee or asset security usually required |
| Overdraft | Permanent baseline credit line | Slow to set up, often needs property security |
| Business credit card | Small short gaps, expense management | High interest if revolved beyond statement cycle |
| Factoring | Businesses willing to outsource credit control | Customer is notified; whole-ledger commitment usual |
For a detailed comparison, see invoice finance vs factoring, vs overdraft, and vs business loan.
When invoice financing is the right call for a small business
Three signals that invoice financing is the right fit:
- Long payment terms. You invoice on 30, 60, or 90 days and the wait is hurting day-to-day cashflow.
- Growth without working capital. Your revenue is growing but your cash is locked in receivables. You cannot fulfil more work without funding the gap.
- Seasonal or lumpy revenue. Construction, staffing, wholesale, and professional services often have spiky cashflow that invoice financing smooths out.
See industry-specific guides for construction, staffing and recruitment, and professional services.
Frequently asked questions
Is invoice financing right for a small business?
Invoice financing is well-suited to small businesses that invoice their customers on payment terms (B2B), use Xero, MYOB, QuickBooks or Reckon, and have customers with strong credit. If you trade on cash terms or sell to consumers, invoice financing is not the right tool. For most AU and NZ small businesses with B2B unpaid invoices, it is the fastest and lowest-friction option for working capital.
How long does it take to get invoice financing?
With FundTap, you can connect your accounting software, choose an invoice to fund, and have funds in your bank account the same business day. The first-time setup typically takes under an hour. There is no formal loan approval process because the funding is secured against the invoice.
Does invoice financing affect my credit rating?
Invoice financing with FundTap is not a loan and does not appear on your business credit report as debt. It is an advance against an existing asset, so your debt profile is unchanged. A credit check on your business and its owners does form part of approval, and that check is recorded on your credit file. A credit check on your business and its owners does form part of approval, and that check is recorded on your credit file. This is one of the reasons accountants increasingly recommend invoice financing for small business clients who want to preserve credit capacity for larger investments.
Will my customers know I am using invoice financing?
No. FundTap is non-disclosed (confidential) invoice finance. Your customer is never contacted, and the financing arrangement is invisible to them. They continue to pay the invoice as normal, and FundTap reconciles the repayment automatically when the funds clear. This is different from traditional factoring, where the financier collects directly from your customer.
What is the difference between invoice financing and factoring?
Invoice financing and factoring both turn unpaid invoices into immediate cash. The difference is the customer relationship and the structure: factoring sells the debt and notifies your customer; invoice financing is confidential and selective. Factoring usually requires whole-ledger commitment; FundTap is per-invoice. See our detailed comparison for more.
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