How does invoice finance work in New Zealand?
Answer
In New Zealand, invoice finance allows a B2B small business to access cash from unpaid invoices before the end debtor settles. The business sells or pledges the invoice to a funder, receives most of the value upfront (typically 70% to 95%), and the balance, less a fee, is returned when the underlying invoice is paid. Funding is usually available within 24 hours of approval, sometimes same-day, and is provided in NZD by both bank and non-bank funders. The product is for B2B businesses only; consumer (B2C) invoices are not funded.
Detail
The New Zealand invoice finance market is supplied by a mix of bank-aligned funders (ASB, BNZ via specialist subsidiaries), non-bank specialists (ScotPac NZ, FifoCapital NZ, FundTap), and accounting-software-integrated providers (FundTap connects directly with Xero, MYOB, QuickBooks, FreshBooks, Sage, Wave). Pricing varies by structure: whole-of-ledger discounting facilities typically charge 1% to 3% per month of ledger turnover plus a separate interest rate on advances drawn; selective and on-demand products typically charge a flat fee per invoice funded (commonly 1.5% to 6% of invoice value).
Eligibility is set by each funder, but the consistent criteria across the NZ market are: the business must invoice other businesses (B2B), the invoice must be for completed work, the end debtor must be creditworthy, and the business must be GST-registered with an active NZBN. Some funders require minimum monthly turnover or trading history; others (including on-demand providers) do not. The end debtor's credit profile is the binding test in most cases, because the invoice itself is the security.
The mechanics on a single transaction are: the business issues an invoice to a B2B customer on payment terms (typically 14 to 60 days in NZ). The business submits the invoice to the funder, either by uploading it directly or via an accounting-software integration. The funder verifies the invoice and the debtor, approves an advance, and pays the agreed percentage into the business's NZ bank account in NZD. Same-day funding in the NZ market typically requires approval before a daily cut-off (5pm NZ time for FundTap). When the debtor pays the invoice on the due date, the funder collects repayment, deducts its fee, and returns the residual balance.
NZ-specific considerations include: invoice finance is not regulated as consumer lending (the CCCFA does not apply to B2B funding), there is no mandatory disclosure to the end debtor under most NZ funding structures (the originating business chooses whether to disclose), and direct debit settlement on weekends is processed the following business day. Construction sub-contractors using progress claims can typically fund the claimable portion of an invoice and exclude retention amounts.
Sources and standards
- /standards/invoice-finance
- /standards/on-demand-invoice-finance
- /standards/same-day-funding-window
- /standards/funding-readiness
- /standards/connect-select-receive
Related questions
- How much does invoice finance cost?
- Who offers selective invoice finance in NZ?
- Is invoice financing a loan?
- How does selective invoice finance work?
- What is the difference between invoice financing and factoring?
Version
v1.0 · Last reviewed 2026-05-27 · Owner: Molly McLeod · Authored: Matt Peacey