Invoice & debtor finance · invoice discounting
Get paid early without your customers knowing.
A confidential funding line against your unpaid invoices. Your customers continue paying you directly; the financier sits silently behind the line. Lowest-cost form of debtor finance for established businesses with reliable receivables.
What it is, when it fits
Plain English, with the trade-offs.
Invoice discounting is a revolving facility where you draw funds against your unpaid invoices as soon as they issue. The financier advances 70% to 85% of the invoice value within 24 hours, then balances the remainder (less their fee) once your customer pays you, on the customer's normal payment terms. Critically, invoice discounting is confidential: your customers pay you directly into your normal account, no notice on invoices, no third party in the relationship. That distinguishes it from factoring, where the financier handles collection visibly. Discounting suits established B2B businesses with reliable receivables, customer concentration that isn't extreme, and a track record of clean collections. Pricing is meaningfully lower than factoring or unsecured lending because the security (your receivables ledger) is liquid and the financier doesn't carry collection cost. Set-up takes 1 to 3 weeks; ongoing operation is largely self-service through the financier's portal.
Hands reviewing finance documents over a paper-strewn table.
Typical scenarios
B2B services with quarterly billing cycles
Why: Revenue is steady but lumpy quarterly; payroll is monthly.
Outcome: $500K facility, 80% advance rate, used to smooth payroll across the quarter without an overdraft.
Manufacturer with 30 to 60 day customer terms
Why: Growth requires inventory pre-funded before customer payment.
Outcome: $1.2M facility, 85% advance rate, scales with the receivables ledger as turnover grows.
Wholesaler smoothing buyer payment behaviour
Why: Major retailers paying on long terms with occasional delays.
Outcome: $800K facility, 75% advance rate, drawn weekly as invoices clear.
Professional services scaling without cashflow constraint
Why: Adding consultants faster than receivables clear.
Outcome: $300K facility, 80% advance rate, available against approved engagements as work invoices.
Lenders for this product
Who we work with.
- Scottish Pacific
- Earlypay
- Apricity Finance
- NAB Business
Lender accreditation varies; not every lender is available for every deal. We pick from the panel based on your specific situation.
How it works
From brief to settlement.
- 01
Receivables review
We review your debtor book, customer mix, and historical collections. The shape of the ledger determines which lenders fit and what advance rate is realistic.
- 02
Indicative term sheet
Two or three lenders return indicative terms within a week. We translate fee structures into a like-for-like effective cost so the comparison is honest.
- 03
Due diligence and onboarding
The chosen lender runs an audit of the receivables ledger, signs documentation, and sets up the operating portal. Typical timeline: 1 to 3 weeks from agreed term sheet.
- 04
First draw and ongoing
You upload invoices to the portal as they issue, advances flow within 24 hours. Customer payments clear into your account as normal; the facility settles automatically.
Indicative pricing & terms
Ranges, not promises.
Rate range
1.5 to 3.5% per invoice plus discount margin
Loan size
70 to 85% advance rate
Term
Ongoing facility, monthly drawdown
Security
Receivables ledger; usually a director's guarantee
Indicative only; specific pricing depends on lender, security, and your business profile.
Frequently asked
Honest answers, plain English.
Will my customers find out?
No, that's the entire point of confidential invoice discounting. Customers pay you directly into your normal collection account; there's no notice on invoices, no third-party calls, no remittance changes. The financier sits behind the scenes, only visible to your finance team.
What happens if a customer doesn't pay?
In a recourse facility (the standard structure), unpaid invoices flow back to you after a set period (usually 90 days past due). In a non-recourse facility, the financier carries the bad-debt risk for an additional fee. We model both for the deal in front of you.
Minimum invoice size?
Most lenders set a minimum facility size ($150K to $500K) rather than a per-invoice minimum. Within an active facility, individual invoices typically need to be over $500 or $1,000 to be funded. Smaller invoices generally aren't worth the admin overhead.
How does this affect my balance sheet?
Invoice discounting normally sits as a liability against the receivable, leaving net working capital roughly unchanged. Some structures qualify as off-balance-sheet under specific accounting standards; your auditor or accountant should confirm the treatment for your circumstances.
Confidentiality breach risk?
Genuinely low with established financiers. Customer-direct payment, no remittance change, the financier's name doesn't appear in customer-visible documents. Set-up procedures are designed around protecting the confidentiality of the facility.
Can I switch back to in-house collections later?
Yes. Discounting is a facility, not a permanent structural change. You can wind down draws over the agreed notice period (usually 30 to 90 days) and exit cleanly once receivables clear.
Related products
If this isn't quite the fit.
Next step
Twenty minutes, no obligation.
Tell us the shape of the deal and the timing. We'll send a lender shortlist for invoice discounting or, if it isn't the right fit, an honest signal of what is.