Invoice Finance

What is Invoice Financing?

Invoice Financing is a facility that allows businesses to borrow money against the raised invoices yet to be paid by customers. It has become a very popular mode of financing to help businesses cover the gap of slow payments from debtors in the last few years.

Under invoice finance facility, the business lender approves an invoice financing limit and the borrower can instantly get up to 95% of the unpaid approved invoices. Once when the actual payment of the invoice is received from the debtors, the advance received gets settled and balance is credited back net of charges. The interest is only charged on the borrowed sum for the outstanding period. This allows businesses to stay on top of businesses’ expenses and make growth decisions. This facility is also commonly known as “Invoice Discounting”.

What makes me eligible for Invoice Financing?

All the businesses may not be eligible for an invoice finance facility.

To be eligible

Critical Information Sheet

Borrowing Limits
Loan Amount$5k- $150M
Can be used for
  • Buying stock/Inventory
  • Paying creditors
  • Other working capital needs
RepaymentsGets settled against payment of invoices within 60-90 days
  • Secured against current assets of the business
  • No real estate security required
Pre-Approval Time24 hours – 72 hours
Unconditional Approval and Settlement Time7-10 days
Documents required
  • Last 6-12 months bank statement.
  • Financial statements with Receivables/Payables ledger
  • Sample invoice with proof of delivery
  • ATO statements
  • A valid identification proof
Interest RatesStarts from 9.99% p.a.
  • Get paid against invoices in advance
  • Can go higher funding without real estate security
  • Does not impact business leverage

*The information provided in critical information sheet is intended as a guide only. Please contact us for more information

How does an invoice financing work?

In past, many businesses considered an invoice finance facility as a complex funding option and shied away from exploring the potential high funding possibility without the need of pledging a real estate security. However, with advancement and technology and digitalization of bookkeeping and accounting services, invoice finance facility has become one of the easiest ways to unlock cash flow of your business in advance. Once your business is approved an Invoice finance limit, you need to follow the following 4 steps to get the funding which can be completed within 2-4 hours:

Upload your issued invoice with a proof of delivery

Once the invoice is verified and approved, the lender pays you up to 95% of the invoice

When your debtor pays the invoice, the balance of invoice will be paid to you net of charges.

The transaction is completed. You can re-use the limit.

What are disclosed and undisclosed invoice finance facility?


Undisclosed/ Confidential

Invoice Financing versus Invoice Factoring

You may have heard of multiple financing products that are related to invoices. The popular Invoice associated financing products include Invoice Financing (Invoice Discounting) and Invoice Factoring. Although they may sound similar, there are fundamental differences between them.

We have provided a table below outline the differences between the two to help you choose the product best suited for your business.

Invoice Financing (Invoice Discounting)

Invoice Factoring

What are the pros and cons of Invoice Financing?

You may have heard of multiple financing products that are related to invoices. The popular Invoice associated financing products include Invoice Financing (Invoice Discounting) and Invoice Factoring. Although they may sound similar, there are fundamental differences between them.

We have provided a table below outline the differences between the two to help you choose the product best suited for your business.



What documents are required to apply for an Invoice Finance Limit?

Generally, a detailed assessment is done before approving an invoice finance limit and would require the following documents.

What are the differences between Invoice Finance and Debtor Finance?

Although Debtor Financing may look very similar to Invoice Financing on a fundamental level, there are differences you should know before choosing one. The major difference is the component that determines the limits of the funds.

Invoice Finance

Debtor Finance

How do I apply for Invoice Financing?

your eligibility

Check the basic loan eligibility of your business as mentioned above

Submit your loan application with required documents

Once you complete your application form. We get in touch to discuss your business requirements and advise the documents required.

Get approved

Once we get all the documents required, we login your application with the most suited lender and get the loan approval

Get Pre-Approved without any credit checks!

What Our Clients Say

Based on 46 reviews
Ajay Kanumuri
Ajay Kanumuri
I would strongly recommend. Saroj Shah helped to get my loan with in span of three days. He was very supportive and clearly explained the loan process.
Abhishek Chhugani
Abhishek Chhugani
Wonderful service by Saroj. Took care of my requirements for business loan. Turnaround time from application to disbursement was 2 days.
Atulkumar Patel
Atulkumar Patel
I don't want to miss this opportunity to say About Saroj Work that he just made it impossible job into possible , I have got loan of 1.5 million event though I have very low credit score . Great work , and highly recommend for any kind of loan issues.
jas singh
jas singh
Great services, great effort by Saroj.
Michael Banabakis
Michael Banabakis
Easy to deal with and nothing was a problem!!
Liesel Collings
Liesel Collings
The broker was super helpful and understanding. He knew I needed the loan in a rush and got me the best deal possible.
Aghar Tefera
Aghar Tefera
Fantastic service!! Very nice & helpful staff!! I had the best experience and got things done promptly and professionally! Thank you Broc Finance 😊!!
Nejatali Rotivand Ghiasvand
Nejatali Rotivand Ghiasvand
Very professional and always there to help you
Khanyi Moyo
Khanyi Moyo
Thank you. This was a great experience with a team that takes time to ask what your needs are then help you find the best deal.
Mai Yang
Mai Yang
Absolutely wonderful service! Saroj was amazing with keeping us up to date with our loan application which was approved quickly without any hassle. I would definitely recommend Broc Finance!

FAQ's About Invoice Financing

Applying for Invoice Financing is similar to applying for other business loans. You need to enter some basic details regarding your business and submit documents as required. However, you need to carefully pick the lender who can meet your business financing requirements, are ready to use your invoices as a security, and can offer competitive pricing. We, at Broc Finance can help you with that, you can simply apply through our website or send us a message to contact you or simply give us a call on 1300 253 041 to talk to one of our lending specialists.

An invoice finance limit works similarly to a business line of credit. Here, the lender approves an invoice finance limit for your business based on your monthly invoice activity. To withdraw funds, you need to provide/upload an invoice on the lender’s portal. You would be able to withdraw between up to 95% of the invoice amount. Once the debtor pays the invoice, your outstanding debt will be settled against the money received, and the balance would be transferred back to you after deducting the interest cost/charges for that period.

An invoice finance facility is not a feasible product for every business. For instance, if you have a retail coffee shop, you may not be eligible, as you would hardly raise an invoice on your customers as all your revenue would be driven through cash or POS. To be eligible for an invoice finance limit, your business should have regular invoice activity. An invoice finance facility is ideal for businesses where the credit period is generally higher.

An invoice finance limit may have one or a combination of the following costs:

Interest cost: Interest charged on the funds drawn against the invoice for the period it remains outstanding.

Line fees: There could be a small monthly/annual fee charged by the lenders for facilitating you an invoice finance limit throughout the term of the loan irrespective of your utilisation.

Invoice Processing Fees: Instead of a line fee, some lenders may charge a one-off invoice processing fee on each invoice financed throughout the term of the limit. Some lenders may give you an interest-free period of 60-90 days for a slightly higher invoice processing fee.

Please feel free to reach out to us on 1300 253 041 or send us a message in case you wish to know more.

Most of the lenders provide you an option to get either all (full ledger) or a selective number of invoices financed (partial ledger). Generally, the following invoices qualify for funding:

  1. Invoices raised to other businesses on standard trade credit terms can be considered for funding. Invoices to private individuals are not suitable.
  2. Invoices less than 90 days old can be eligible for funding. Invoices older than 90 days cannot be funded.
  3. Invoices must relate to goods delivered and/or services fully completed.

The invoice funding limit is determined based on the monthly invoice activity of your business. Generally, lenders are open to provide a limit of up to 3 – 4 months of the invoices raised by your business.

Generally, you are not required to provide any additional property security. The funding is advanced against the invoices raised and the lenders would have to charge over the invoices.

Generally, an invoice finance limit is a less risky and more flexible product as compared to a normal unsecured business loan product and lenders can approve a higher limit which is not possible with an unsecured business loan or a normal business line of credit limit.

Generally, lenders can advance you between 70%-95% of the invoice value depending on the risks associated with your business.

A Debtor Finance limit may not always be the right option for your business as you may have a business wherein you do not have account receivables activities, or your business requires a smaller loan amount, and a simpler option would be more suitable. There are various alternative business loan options that we can help you with. Some of the popular options are secured business loans, unsecured business loans, business line of credit and vehicle and equipment finance facilities. Please reach out to us on 1300 253 041 or send us a message. One of our lending specialists would get in touch in no time to assist you.

At Broc Finance, we endeavour to get the most adequate facility suitable to the business requirements of our clients. In most of the cases logged in through us, we try to get an indicative offer from the lender for our client’s consideration before proceeding with formal application and consent to credit check. This approach helps our clients to avoid unwanted rejections and credit checks which can significantly impact their credit scores.

We would be happy to answer if you have any other questions. Please contact us.

We will work with you

to overcome approval related hurdles

by getting your asset finance, property finance and unsecured business loans, without the frustrations of the bank process.