Cash from unpaid invoices, compared

The problem

The invoice is sent, the cash isn’t in yet.

You’ve already invoiced your customer. They pay on 30, 60 or 90 day terms. Until then, your cash is tied up in unpaid invoices.

The three products

Your whole ledger, one invoice, or funds as you need them.

Invoice FinanceUnlock cash tied up in unpaid invoices instead of waiting 30, 60, or 90 days to get paid.

Fund an InvoiceFund a single invoice when you need one gap covered, without a full ongoing facility.

Business Line of CreditDraw funds as you need them and only pay interest on what you use.

Compared

Side by side, at a glance.

Invoice finance, fund an invoice and a business line of credit
	Invoice finance	Fund an invoice	Business line of credit
Amount	Up to 90% of invoice value, sized to your receivables	70 to 90% of one invoice of $5,000 to $2,000,000	$10,000 to $500,000
Term	Revolving across your debtor ledger, with no fixed end date	One invoice; it ends when your customer pays	Revolving, typically 12 to 36 months
Security	Your invoices and debtors	The one invoice; some lenders add a personal guarantee	Unsecured to $250k, on a director’s guarantee
How you pay	The balance, less fees, comes to you when your customer pays	The balance, less the fee, comes to you when your customer pays	Interest only on funds drawn, not the full limit
Suits	A business that invoices other businesses and waits 30, 60 or 90 days to get paid	A business with an occasional large invoice or a seasonal gap	A business that pays wages, buys stock or waits on invoices in cycles
In full	Invoice Finance	Fund an Invoice	Business Line of Credit

Indicative, and subject to lender assessment.

Is it right for you?

When funding your invoices fits, and when it doesn’t.

Often fits

Business customers on 30, 60 or 90 day terms
A facility that grows as your sales grow
An occasional large invoice
A seasonal cash flow gap
A newer business with creditworthy customers

Usually not

Paying for stock before a sale, where trade finance may fit
Progress claims, milestone invoices or invoices with retentions, which may not be eligible
Invoices due in under 14 days, which are rarely worth funding once fees are applied

Illustrative example

One $100,000 invoice, on 60-day terms.

Invoice finance, using its calculator’s starting figures.

Outstanding invoice value: $100,000
Upfront advance: $80,000
Facility fee: $4,000
Paid on collection: $16,000

Illustrative only, based on an 80% advance rate, a 2% per-30-day fee, and 60-day debtor terms. Your Compare Report shows the exact advance rate and fee each lender offers your business.

Fees shown are indicative; your report shows each lender’s fees.

Business funding, compared on real data, in three steps.

How It Works

Questions about unpaid invoices.

What is invoice finance?

Invoice finance is an ongoing facility that lets you access cash tied up in unpaid invoices. Instead of waiting 30, 60, or 90 days for customers to pay, a lender advances you up to 90% of the invoice value, with the balance paid once your customer settles.

How is Fund an Invoice different from the Invoice Finance facility?

Invoice Finance is an ongoing facility where you assign most or all of your invoices to a lender in exchange for a lower, volume-based fee. Fund an Invoice is a one-off, ad hoc alternative: you choose a single invoice, fund it once, and walk away with no ongoing commitment. It suits businesses with an occasional large invoice or a seasonal cash flow gap rather than a business wanting to fund its whole ledger every month. Because there’s no volume commitment, the per-invoice cost is generally higher than a full facility.

What happens if my customer doesn’t pay?

With recourse factoring (the most common type), you’re responsible for repaying the advance if the debtor defaults. With non-recourse factoring, the lender absorbs the credit risk, but this typically comes at a higher cost.

How do you get paid?

Comparing costs you nothing. Not comparing can cost you plenty.

The headline rate rarely tells the whole story. Fees, charges and loan terms can add far more to what you repay. That’s why your Compare Report shows every cost we can identify side by side.

In most cases, the lender pays us, and only if you decide to proceed with their product offer. For more complex deals, or where the lender pays us little or nothing, we may charge a fee for our service. It doesn’t happen often, but when it does, it’s shown on your Compare Report and we’ll walk you through it before you decide.

No obligation to proceed, ever.

How We’re Paid →

No credit file impact · No cost to compare · No obligation

Or talk to us: 1300 161 641 · support@tradefunding.com.au

Unpaid invoices: bring forward what you’re owed.