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. This financial tool allows businesses to maintain operations and fulfil their financial obligations without interruption. 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 under 24 hours.¹

No extra security

No real estate security is required – just the invoices.

24/7 self-serve portal

Upload invoices in seconds, reducing paperwork and admin.

Grows with your business

The more invoices you issue, the more funds you can access.

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 one will know. 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

Step 2: Apply

Complete the online application to get your quote with a rate personalised to your business.

Step 3: Approval

Accept your quote, we’ll then process your application for approval (subject to credit criteria).

Step 4: Drawdown

Once approved and your facility is set up, funds will typically be released in under 24 hours.¹

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 as you’re a small business or an industry not suitable for Invoice Finance, you might want to consider an alternative line of credit that could assist with your cash flow issues. 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 that help free up cash flow and maintain working capital.

Invoice Factoring is when you sell your invoices to a finance company, and they 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, as 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 outstanding invoices are being used as security for the loan, all invoice payments must go into a Westpac business transaction account that will become your dedicated collection account. This account will have your company details so that your customers feel comfortable making payments into it. All receipts are sent to us overnight to pay back the advances made to you, reducing the outstanding balance and minimising any interest payments on the account. If you already have a business transaction account with Westpac that your customers are familiar with and are currently paying into, this account can become 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?

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.

1. 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