- Last Updated: 20 April 2026
Invoice Finance in Australia
Unlock cash flow tied up in unpaid invoices and get working capital for your business.
- Access up to 85% of invoice value*
- Get a letter of offer within 24 hours*
- Selective invoice finance facilities available
- Support cash flow and help your business grow
Get Invoice Finance with Dark Horse Financial
1
Contact Our Team
Fill out our online form to apply for an invoice finance facility. We’ll get in touch with you fast to understand your situation and make a recommendation.
2
Submit Application
We’ll expertly handle your application from start to finish. Lenders can produce a letter of offer within 24 hours. Refinancing existing facilities can take longer.
3
Get Funded
Once approved, you’ll get access to software that connects with your accounting platform or requires you to upload a file of your accounts receivable. This allows you to get funding quickly and seamlessly.
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What is invoice finance?
Invoice finance is a funding solution that allows you to access cash tied up in unpaid invoices. Instead of waiting 30 to 90 days for customers to pay, you can receive a large portion of the invoice value upfront.
The lender advances funds against your invoices. Any balance you draw is repaid when your customer repays. There are confidential and disclosed facility types and lines of credit where your customer still pays into your bank accounts, not the lenders.
This type of funding is commonly used by businesses that operate on credit terms and need consistent cash flow to cover expenses. These include businesses in transport, manufacturing, labour hire, wholesale, as well as supermarket suppliers and suppliers to other large retailers and more.
Features*
Advance rate
Most lenders advance up to 85 percent of the invoice value upfront, with the remaining balance paid once the customer settles the invoice.
Fees
Lenders charge a fee which can range from 0.5%-4.5 of the invoice value, which will be subtracted from the balance after the customer pays. There is a large variation in fees between lenders, and the way they present their fees varies as well.
Funding speed
A letter of offer is often available within 24 hours of application. Due diligence by the lender can take a week or more depending on lender selection. Once due diligence is completed, formal loan documents will be signed and the facility will settle shortly after, making funds available.
Facility type
Options include whole of book facilities, where all invoices are funded or selective invoice finance, where you choose specific invoices.
Scalability
Facilities at the right lender can grow as your sales increase, allowing you to access more funding as you issue more invoices.
How Does Invoice Finance Work?
Step 1: Apply for a facility
Invoice finance starts with applying for a facility with a finance provider. You can do that by filling out our online form.
Lenders assess your business based on your financial position and trading activity. This typically includes reviewing the following:
- Year to date financials
- Last 2 years’ financials
- ATO portals
- Current accounts receivable and payable
- The director’s personal position.
Based on these, the lender determines an approved limit and some will issue a letter of offer within 24 hours.
Step 2: Due diligence and setup
Once you accept the offer, the lender completes due diligence.
This focuses on confirming that the underlying invoices are valid, usually through evidence of work completed or proof of delivery. After this process, the facility is established and ready to use.
Step 3: Access funding against your invoices
Once the facility is active, you can access funds against your outstanding invoices.
Many modern invoice finance lenders use cloud based platforms that integrate with accounting software such as Xero or MYOB. This allows your invoices to be updated automatically, so you can see available funds and draw down without manually submitting each invoice.
Step 4: Ongoing funding and repayments
As you issue invoices, your available funding increases. The facility operates on a revolving basis, meaning you can continue to draw funds as your receivables grow.
Customer payments are handled differently depending on the structure of the facility. In some cases, customers pay the lender directly. In others, payments continue to be made to your business, or the arrangement may be structured so it is not visible to your customers. This is called a confidential facility.
Fees are applied based on the facility and usage, but the exact structure varies between lenders.
Types of Invoice Finance
Whole of Book Invoice Finance
This involves making all your invoices potentially fundable. It provides consistent access to working capital but may involve ongoing commitments and minimum usage requirements.
Selective Invoice Finance
You choose which invoices to fund on a case by case basis. This offers flexibility without long term commitments.
Benefits of Invoice Finance
Improve cash flow
Access funds tied up in invoices without waiting for customer payments.
Support growth
Take on larger orders and grow your business without cash flow constraints.
Flexible funding
Draw funds as needed based on your invoices rather than fixed loan amounts.
No need for property security
Invoices act as the primary security, reducing reliance on other assets.
Faster access to capital
Receive funding quickly compared to some traditional loans.
Eligibility Criteria
Business model
Your business must issue invoices to customers on credit terms.
Debtor quality
Lenders assess the reliability and creditworthiness of your customers, as they are responsible for paying the invoices.
Trading history
Some lenders require a minimum trading period, though newer businesses may still qualify at many lenders. Many providers support startups provided they can demonstrate the need for a facility of at least a $300,000 limit.
Invoice volume
A consistent volume of invoices improves approval and facility size.
What You Can Use Invoice Finance For
Working capital
Cover wages, rent, and supplier payments while waiting for customer payments.
Growth opportunities
Take on larger contracts or increase production without cash flow pressure.
Inventory purchases
Purchase stock to meet demand without waiting for invoices to be paid.
Managing cash flow gaps
Bridge the gap between invoicing and receiving payment.
Case Study: $500k Selective Invoice Finance + $500k Unsecured Line of Credit
A large allied health provider delivering services to TAC, NDIA, and NDIS clients approached us with ongoing cash flow pressure that their existing funding solutions could not resolve.
The business had over 200 staff and monthly revenue that could exceed $1.5 million. Despite strong turnover, their cash flow was under constant strain.
The issue came down to timing.
Staff wages were paid weekly, while payments from insurers and government bodies were received monthly and often delayed. This created a consistent gap between outgoing and incoming cash, similar to what is seen in labour hire businesses rather than traditional healthcare providers.
They had previously used unsecured loans to manage this gap. While these facilities provided short term relief, they did not align with how the business operated and became an expensive way to manage ongoing cash flow.
The solution
We worked with a lender experienced in invoice finance to design a solution that matched the business’s cash flow cycle.
The structure included:
- A $500,000 selective invoice finance facility
- A $500,000 unsecured line of credit
Selective invoice finance allowed the business to choose which invoices to fund, rather than committing their entire receivables ledger. This meant they could bring forward cash flow only when needed, without ongoing costs.
A key advantage of this facility was the absence of ongoing fees. There were no service fees, monthly fees, or line fees. If the business did not use the facility, there was no cost.
The unsecured line of credit was used to refinance existing high cost term loans and provide additional working capital. This created further flexibility and reduced overall funding costs.
The outcome
The combined structure gave the business access to $1 million in flexible funding that aligned with how they operated.
Payroll pressure was reduced, reliance on short term loans was removed, and the business now had funding that scaled with its revenue.
The result was a more stable cash flow position and a funding solution that reflected the size and complexity of the business.
Frequently Asked Questions
Yes, an invoice finance facility involves debt. Invoice finance is a line of credit and is structured differently from traditional loans. It allows businesses to recognise the cash from their invoices ahead of payment. The debt component of invoice finance relates to any balance a business draws down against its invoices, as long as the amount remains outstanding. Once the customers pay, the debt is cleared.
You can typically access up to 85% of the value of your approved invoices. Depending on the value of your invoices, you can access millions of dollars in financing. The exact advance rate depends on the lender and the strength of your customers. Different lenders have different available limits, which makes lender selection important, especially if your business is growing. Our team can help you select the best invoice finance provider for your situation.
A letter of offer can be issued in as fast as 24 hours after application. Once you sign the offer, the lender does its due diligence, which will take around a week at most lenders. After this period, the facility becomes available. Lenders typically make funds available immediately or the next day.
No, you do not need property or assets as security for invoice finance. Invoice finance is secured primarily against your receivables, meaning your unpaid invoices act as the security for the facility.
Yes, you can choose specific invoices to fund with selective invoice finance. With whole of book facilities, all invoices can be fundable and drawn from.
This depends on the facility and the lender. Some facilities are disclosed to customers, while some are not. If the facility is disclosed, customers can get letters, emails, direct phone calls, or updates to remittance instructions. Many larger businesses like supermarkets and other corporates are used to invoice finance facilities being disclosed.
Problems with disclosure can arise in two main areas: collections activity and invoice verification processes. Some lenders have poor reputation and have aggressive or disruptive collection practices, creating friction between customers and businesses. This is why lender selection is critical. Better lenders apply technology and integrations to simplify the invoicing and collections process.
It’s preferable to work with lenders that allow the business to manage its own collections or have well managed and non intrusive processes for collections. We can connect you with these types of lenders to ensure that your facility doesn’t damage your relationship with your customers.
Businesses that invoice other businesses on credit terms are typically eligible. This includes industries such as transport, labour hire, wholesale, and manufacturing.
Invoice finance lenders in Australia don’t assess every debtor individually like a traditional credit provider, but they do evaluate the quality of the receivables book using sources like Equifax, Illion, or CreditorWatch.
The primary focus is on ledger behaviour looking at how aged the receivables are, payment patterns, and debtor concentration.
Some lenders also rely on trade credit insurance where insurers set credit limits per debtor and effectively underwrite their risk.
Invoice finance is not a traditional loan. It is a line of credit facility that advances funds against your receivables, meaning the funding is tied directly to your invoices rather than a fixed loan amount. Since it is a line of credit, any balance borrowed, as long as unpaid, is considered debt. The debt is cleared once the customer pays. The credit limit on an invoice finance facility is evergreen and automatically renews as the outstanding balance is paid down.
Yes, you can use invoice finance together with other loans. Many businesses use invoice finance alongside other funding. Lenders will assess your overall position to ensure the facility is sustainable.
Most whole book facilities will have a minimum commitment term of 12 months up to 3 years. It’s important that the term you agree on isn’t too restrictive, especially if you’re looking to move to a better lender as your business grows.
Some selective invoice finance products don’t have any minimum term requirements, which can offer more flexibility.
If you’re planning to move to another lender, it’s important to understand the cost of exiting early. There will be a standard notice period (usually around 3 months) plus whatever remains on your contract term. Exit fees are often based on the minimum monthly fees across the remaining period and the notice period.
Lender selection is important. Some lenders can negotiate these exit costs down, while some may increase them by factoring in the finance charges they expected to earn.
If your customer does not pay, you may be required to repay the advance depending on the agreement.
Yes, invoice finance can grow with your business, provided you choose the right lender. As your invoice volume increases, your available funding typically increases, making it suitable for businesses experiencing growth.
Startups may qualify for invoice finance with the right lender. Better lenders will support startups as long as they can demonstrate the need for a facility of at least a $300,000 limit, while there are smaller lenders happy to work with businesses that require a smaller starting limit.
* To approved applicants only
Disclaimer: Loans and the benefits associated with them are only available to those who have been approved. The information provided on this page is general and does not consider your individual circumstances. It is not meant to serve as a substitute for professional advice, and you should not rely on it for any decisions. Always consult with a professional regarding finance, tax, and accounting matters before making any choices or taking action.