Invoice finance

What’s Invoice Finance?

Invoice Financing, also known as accounts receivable or debtor finance, assists companies with bridging cash flow gaps between issuing an invoice and receiving payment. The amount accessed is dynamic and changes in line with the outstanding customer invoices in your system without the need to reapply.

How Invoice Finance could boost your business cash flow

Fast access to cash

Turn your invoices into cash in just minutes. Excludes weekends and public holidays.

No extra security

No real estate security is required. You only need to supply your invoices.

24/7 self-serve portal

Upload invoices in seconds, reducing paperwork and admin. Option to sync with Xero.

Grows with your needs

The more invoices you issue, the more funds you can access for your business.

Enjoy ongoing support from your dedicated client manager

You'll get help from a team of Invoice Finance specialists whenever you need it. They’ll support you and your business every step of the way, for the life of your financing.

How Invoice Finance helps manage business cash flow

Don’t wait for invoices to be paid to access the money. Discover how Invoice Finance could help businesses manage their cash flow.

How Invoice Finance aims to help businesses manage cash flow

Busting the myths about Invoice Finance

Myth 1: I'll have to pay if a customer doesn't pay their invoice

Absolutely not. Invoice Finance is a flexible line of credit, so if a customer doesn't pay, it only affects the future funds you can access. The available funds are updated based on future invoices you issue and customer payments you receive.

Myth 2: My customers will find out and I'll lose their trust

No, it’s confidential. We keep your Invoice Finance arrangement confidential. You'll still manage your customers and collect their payments, but only you and Westpac will know about your funding.

Myth 3: Invoice Financing is for failing businesses

That's not true. Many successful companies use this type of funding to grow their business. The more you invoice, the more funds you can access.

Myth 4: Invoice Finance is expensive

Not always. You may pay more than for some secured loans, but you'll only pay for what you use, including an establishment and line fee. Plus, you can get more funds than with an overdraft, and it's cheaper than borrowing without security.

How it works

Step 1: Enquire

Contact us and a specialist manager will get in touch. They’ll talk to you about your business, financing needs and Invoice Finance eligibility.

Step 2: Apply

Complete the online application and upload your documents. You can automate the process if you use Xero for accounting software.

Step 3: Approval

Receive and accept your Invoice Finance quote. We'll keep you informed about your application progress and send you the facility agreements.

Step 4: Drawdown

Once approved and your Invoice Finance facility is set up, funds will typically be released within minutes. Excludes weekends and public holidays.

Ready to get started?

Submit an enquiry

Leave your details and one of our specialist Invoice Finance managers will get back to you within 1-2 business days.

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Frequently asked questions

What can I do if my business doesn’t meet the eligibility criteria?

If your business doesn’t meet our requirements, it could mean that you’re:

A small business
OR
In an industry not suitable for Invoice Finance.

Then, you might want to consider an alternative line of credit that could assist with cash flow. A business overdraft could give you the cash injection your business needs for reliable working capital.

Discover Westpac business overdrafts

What’s the difference between Invoice Finance, Invoice Discounting, Debtor or Receivable Finance and Invoice Factoring?

They're all forms of business finance raised against unpaid invoices, which help free up cash flow and maintain working capital.

Invoice Factoring is when you sell your invoices to a finance company. They then collect the money directly from your customers. This means your customers will know you're receiving funding.

On the other hand, Invoice Finance, Debtor or Receivable Finance and Invoice Discounting provide access to funds against all or specific unpaid invoices.

With Westpac's Invoice Finance, you'll get finance based on all your invoices. Your customers will never know. You'll continue to collect any outstanding invoices directly. Plus, you can get quick access to more funds as needed, as the availability of funds is recalculated as new invoices are issued and payments are made.

Why do I need a dedicated collection account?

As your unpaid invoices are used as security for the loan, all invoice payments must go into a Westpac business transaction account. This account will become your dedicated collection account. It will have your company details, so your customers feel comfortable paying into it.

All receipts are sent to us overnight to pay back the advances made to you. This lowers the outstanding balance and reduces any interest payments on the account. If you already have a Westpac business transaction account used for customer payments, this can be your dedicated collection account.

Explore Westpac business transaction accounts

Can I access funds from the dedicated collection account?

Where do I access the funds Westpac is advancing me?

Any drawdowns are paid into your business transaction account. You can then use these funds to pay suppliers and overheads. This business transaction account is separate from the dedicated collection account.

Our system automatically syncs with Xero accounting software. This helps reduce manual effort on your part and provides additional reporting and insights on payment trends. The ability to sync with other major accounting software is coming soon.

Explore Westpac business transaction accounts

What happens if my customer doesn’t pay their invoice?

Collecting debts early is good business practice. As we don’t interfere with your customers or collection process, you must stay on top of your outstanding customer invoices.

If your customer doesn’t pay on time, you’re not required to pay anything, however, the amounts will be disapproved/deducted from your available funds. If they eventually pay, this will cover the outstanding amount. Suppose they don’t pay or can’t pay? In that case, any future invoices you issue and payments from other customers will cover any shortfall.

Things you should know

Credit criteria, fees, charges, terms and conditions apply. Talk to your banker for product details.

Access to funds is subject to systems availability. Excludes weekends and public holidays.

Find out what information you need to provide to become a customer.

Invoice Finance