Invoice Financing NZ
Unlock Cash from Unpaid Invoices
Struggling to wait 30-90 days for customers to pay? Invoice financing lets New Zealand businesses access cash against unpaid invoices, improving cash flow without waiting for customers.
Same Day Finance Ltd connects you with invoice finance providers. Submit your enquiry and we’ll introduce you to a lender who can review your situation quickly.
What is Invoice Financing
Invoice financing (also called invoice factoring or debtor finance) allows businesses to use unpaid invoices as security for immediate cash. Instead of waiting for customers to pay, you get funds upfront – typically a large percentage of the invoice value – with the lender collecting payment later.
With some lenders, your clients will still pay their invoice direct to you and they are not aware of your finance arragements.
Main Types
Invoice Factoring
The lender often manages collections from your customers.
Invoice Finance / Discounting
You keep control of collections, using invoices as loan security.
Benefits of Invoice Financing for NZ Businesses
- Immediate Cash Flow. Bridge the gap between invoicing and payment.
- No traditional property security needed. Invoices themselves secure the funding.
- Scales with your business. More invoices can mean more available funding.
- Focus on debtor quality. Strong customer base can improve approval chances.
Typical Cost & Terms
Subject to each lender’s criteria
- Advance rate: Commonly a high percentage of invoice value upfront.
- Fees: usually a percentage of invoice value, plus any service/administration fees.
- Repayment: Automatic when your customer pays (often 30-90 days).
- Minimums: Some lenders require a minimum invoice amount and minimum monthly volume.
Who Invoice Financing May Suit
- NZ- registered businesses with business-to-business (b2B) customers
- Companies that issue invoices on credit terms (e.g. 7-90 days).
- Businesses with regular turnover and a stable debtor ledger.
- Firms in industries like wholesale, manufacturing, transport, labour hire, etc.
Same Day Finance Ltd does not provide invoice finance. We refer you to specialist providers who can assess your debtor book and offer funding if suitable.
Invoice Financing FAQS
How fast can I get funds using invoice financing?
Some providers can advance funds within 24-48 hours of approval and receiving invoices.
Do my customers know I'm using invoice finance?
It depends on the structure. With factoring, customers are usually aware. With some invoice finance/discounting arrangements, they may not be.
Can startups use invoice financing?
Many providers prefer at least a few months of trading and an established customer base, but criteria vary by lender.
Will this impact my existing bank facilities?
It can, especially if your bank already has security over your debtor book. Always check with your existing bank and the new provider.