Cash Flow Solutions for B2B Operations in 2025
Cash flow is critical for every business, but if you’re regularly waiting 30, 60 or even 90 days for clients to pay, your growth can grind to a halt. For many Australian businesses, invoice funding offers a fast and flexible way to access working capital — without taking on more debt.
This guide explains how invoice funding works, the pros and cons, and whether it’s suitable for your business.
What Is Invoice Funding?
Invoice funding (also known as invoice finance or debtor finance) is a business finance solution that allows you to receive up to 90% of the value of your unpaid invoices upfront. Once your customer settles the invoice, the balance (minus fees) is transferred to you.
This structure helps businesses turn sales into cash — without the wait.
Invoice funding is ideal for:
- B2B companies with 30+ day payment terms
- Businesses with reliable clients but delayed payments
- Enterprises that need fast working capital without a traditional loan
How Does Invoice Funding Work?
Here’s a typical example based on a $50,000 invoice:
- You submit the invoice to your invoice finance provider
- They advance 85–90% ($42,500–$45,000) immediately
- Your client pays the invoice — either to the lender or to you
- The remaining 10–15% is paid to you, minus service fees
This process can repeat for multiple invoices, giving you a continuous source of cash flow.
Types of Invoice Funding in Australia
| Type | Description |
| Disclosed | Your customer knows the invoice is financed and pays the lender directly |
| Confidential | The funder stays behind the scenes; you collect payment and repay the lender |
Benefits of Invoice Funding
- Immediate cash flow – receive funds as soon as you issue invoices
- No property or assets required – the invoice serves as security
- Flexible and scalable – grows with your sales volume
- No fixed repayments – cash is repaid as clients pay their invoices
- Ideal for B2B businesses – including trades, agencies, wholesalers, and service firms
Things to Consider Before Using Invoice Finance
- Minimum volume requirements – many lenders require at least $10,000/month in invoices
- Service fees – typically 1–3% per month, plus interest on funds drawn
- Customer perception – disclosed arrangements may need to be explained to clients
When to Use Invoice Funding Instead of a Business Loan
Invoice funding suits businesses that:
- Deal with large, reliable clients
- Experience cash flow gaps between work completed and payments received
- Need access to funds without taking on long-term debt
- Require a solution that scales in line with invoicing volume
Invoice Funding vs Business Loans
| Feature | Invoice Funding | Business Loan |
| Based on unpaid invoices | Yes | No |
| Credit check required | Often not | Yes |
| Repayment method | Customer pays invoice | Regular instalments |
| Scales with sales | Yes | Fixed loan amount |
| Suitable for | B2B with overdue payments | General capital needs |
Case Study: Sydney-Based Wholesaler Unlocks Cash Flow
A beverage wholesaler in Sydney was carrying over $300,000 in unpaid invoices each month. While business was strong, cash flow was tight.
With invoice funding via Lyft Money, they:
- Accessed up to $250,000 within 48 hours
- Paid suppliers early and qualified for bulk discounts
- Hired additional warehouse staff
- Doubled monthly output within six months — without taking on debt
What Are the Qualification Criteria?
Invoice funders look more closely at your clients than your own credit file. Most will require:
- An ABN and minimum six months trading history
- At least $10,000/month in invoice volume
- A reliable payment track record with clients
- Clear invoice terms and documentation
A broker like Lyft Money can help match you with a lender aligned to your industry, transaction size, and cash flow goals.
Final Thoughts: Is Invoice Finance the Right Fit?
If you’re looking for a finance solution that frees up your existing revenue without increasing your liabilities, invoice funding could be ideal.
Unlike traditional loans, this solution helps you get paid faster, reduce financial strain, and grow your business — all by unlocking cash already earned.
Need Faster Access to Unpaid Invoices?
Let’s tailor a flexible invoice funding solution that suits your client base, volume, and cash flow cycle.
Talk to the team at Lyft Money — Australia’s invoice finance specialists