What Is Invoice Finance in Australia? A Complete Guide
By FundTap Team ·14 Apr 2026
Invoice finance lets an Australian business draw the money tied up in unpaid invoices before the customer pays, an advance in hours instead of a 30–90 day wait. It is not a traditional loan: you are accessing money you have already earned, repaid automatically when your customer pays.
Last reviewed 21 August 2026
How invoice finance works in Australia
Invoice finance advances you most of an invoice's value now, and settles when your customer pays. You have done the work and sent the invoice; invoice finance closes the gap between sending it and being paid.
With FundTap the steps are:
- Connect your accounting software (Xero, MYOB, or QuickBooks)
- Select the invoices you want to fund
- Receive an advance, FundTap funds the same day, and the median time to a first fund is 3 days from sign-up (FundTap data, 2026)
- When your customer pays, the advance settles automatically
"Most business owners don't have a profit problem, they have a timing problem. The money is earned; it's just sitting in someone else's account. On-demand invoice finance hands that timing back to the owner, one invoice at a time."
Matt Peacey, Founder & CEO, FundTap
Types of invoice finance available in Australia
There are three models, and they differ mainly in control and commitment.
- Invoice factoring, you sell invoices to a factoring company that manages collections and notifies your customers. Usually requires whole-ledger assignment.
- Invoice discounting, you borrow against invoices but keep control of collections. Confidential, but typically needs high turnover and whole-ledger assignment.
- On-demand invoice finance, you choose individual invoices to fund when you need to. No whole-ledger requirement, no lock-in. FundTap operates this model.
What does invoice finance cost?
Cost depends on the model. As a guide:
- Traditional factoring: 1–5% per month + service fees + possible minimums
- Invoice discounting: service fee (0.1–0.5% of turnover) + interest on advances
- FundTap: a single transparent fee from 4% per invoice, no monthly fees, no minimums, no hidden charges
Who can use invoice finance?
Most Australian businesses that invoice other businesses (B2B) on credit terms can use it. The usual requirements:
- You invoice customers on credit terms (not cash on delivery)
- Your customers are creditworthy businesses or organisations
- You use accounting software (Xero, MYOB, or QuickBooks for FundTap)
FundTap has no minimum turnover, no minimum trading history, and needs no asset security. FundTap's selective model also keeps risk low.
Is invoice finance a loan?
It is not a traditional loan. You are not taking on new debt, you are accessing money your customers already owe you, repaid automatically when they pay. It does not sit on your balance sheet as borrowing and does not consume your lending capacity with the banks.
Industries that commonly use invoice finance
Invoice finance is used across construction and trades, recruitment and staffing, manufacturing, wholesale and distribution, logistics and transport, professional services, and healthcare, any sector where businesses invoice on terms and wait 30–90 days to be paid .
See how FundTap works → Rated 4.9★ on Google (147 reviews) and 5.0★ on the Xero App Marketplace (110 reviews).
Frequently asked questions
What is invoice finance and how does it work in Australia?
Invoice finance lets you get paid for an invoice before your customer pays it. You connect your accounting software, choose an unpaid invoice, and see the exact fee before you commit. Once approved, the money reaches your account the same day. FundTap funds small businesses in both Australia and New Zealand.
Is invoice finance a loan?
No. You are bringing forward money you have already earned for work you have already done, rather than borrowing against the future. The advance is settled when your customer pays the invoice.
How much does invoice finance cost in Australia?
From 4% per invoice, quoted upfront before you commit, plus a daily rate for the funding period. There are no setup fees, no monthly fees and no exit fees, so you only pay when you fund an invoice. Higher base fees apply to construction businesses and to businesses without connected accounting software.
Do my customers find out I'm using invoice finance?
No. FundTap never contacts your customers. They keep paying into your own bank account, exactly as they did before.
What do I need to qualify for invoice finance?
An unpaid invoice of at least $300 for work you have already delivered. Connecting Xero, MYOB, QuickBooks or Reckon is the quickest route, but businesses without connected software can still be onboarded manually. Sole traders and registered companies are both welcome.
How fast can I get funded?
Once approved, funded the same day. Connecting your accounting software takes a few clicks, and after that funding an invoice takes minutes. There is no minimum, so a single invoice is enough.
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