Melbourne, VIC
Invoice finance in Melbourne
Melbourne manufacturers and wholesalers selling into national retailers and distributors face some of the longest payment terms in Australian trade, with 60 days common and 90 not unheard of. Invoice finance advances against each invoice on dispatch, releasing the cash to buy materials for the next order. It scales automatically with turnover, which suits a manufacturer winning national supply agreements faster than the balance sheet can fund them.
Business finance in Melbourne
Melbourne has Australia’s most diverse business base: the country’s largest container port, a substantial manufacturing and food processing sector through the north and west, major health and education precincts, and a professional services and creative economy in the inner city. Construction has been the dominant growth driver, with extensive residential development and a large state infrastructure program running across the metropolitan area.
How we work with Melbourne businesses
Lyft Money works with Melbourne businesses by phone and video, with documents handled online and settlements arranged Australia-wide. Anthony, Stefan and Kris are based at Level 14, 3 Parramatta Square in Sydney, and a Melbourne client deals with the same broker throughout — including where a machine is being bought from a Victorian dealer and delivered interstate.
What is invoice finance?
Invoice finance is funding advanced against eligible unpaid business invoices, typically 70–90% of the invoice value upfront with the balance (less fees) paid when your customer pays. It uses your receivables as security rather than property.
Invoice finance in Melbourne: the numbers
| Typical amounts | $20,000 – $5,000,000 |
|---|---|
| Term | 1–12 months |
| Indicative rates | 8% – 18% p.a. · rate history |
| Speed | 24–48 hours per invoice once set up |
| Key Melbourne industries | Manufacturing · Construction · Transport and logistics · Cafés and hospitality · Professional services |
| Commonly financed here | CNC machine · Prime mover · Forklift · Coffee machine · Ute |
Rates are indicative, change without notice and depend on the lender, product, asset, term and your credit profile at the time of application. They are not an offer of finance. Comparison rates, where shown, are true only for the example given.
Key terms
What is invoice finance?
Invoice finance (also called debtor finance or receivables finance) advances a percentage of an unpaid invoice’s value now, with the remainder paid when the customer settles, minus the financier’s fees.
Invoice finance vs invoice factoring
Factoring sells the invoice to the financier who collects from your customer; invoice discounting keeps collections with you and is usually confidential. Both are forms of invoice finance.
Invoice finance questions
How does invoice finance work?
Invoice finance lets you draw an advance against unpaid customer invoices, typically 80 to 90 per cent of the invoice value, within 24 to 48 hours of issuing the invoice. When your customer pays, the financier releases the remaining balance less their fees. It turns money you have already earned into working capital without waiting 30, 60 or 90 days for payment. It is used by businesses that sell to other businesses on payment terms, such as wholesalers, labour hire, transport and manufacturing.
What is the difference between invoice factoring and invoice discounting?
With invoice factoring the financier manages your sales ledger and collects payment from your customers, who are usually told about the arrangement. With invoice discounting you keep control of collections and the facility can be confidential, so customers pay you as normal. Factoring suits smaller businesses that want the collections handled; discounting suits businesses with an established credit control process. Both advance funds against the same invoices, and the cost and eligibility differ between lenders.
Will my customers know I am using invoice finance?
Only if you choose a disclosed facility. Confidential invoice discounting is widely available in Australia and your customers continue to pay you directly, with no notice on the invoice. Disclosed factoring notifies customers to pay the financier, which some businesses prefer because collections are handled for them. Your broker explains which lenders offer confidential facilities and what each requires, such as a minimum turnover or an established ledger.
How much does invoice finance cost?
Invoice finance is usually priced as a discount charge on the funds advanced, quoted as a rate for each 30 days the invoice is outstanding, plus a service or administration fee on the invoice value. The total cost depends on how long your customers take to pay, the size of your ledger and the quality of your customers. The clearest comparison is the cost per $1,000 of invoices financed over your typical payment cycle, which your broker calculates for each lender before you decide.
Which invoices are eligible for invoice finance?
Eligible invoices are for goods delivered or services completed, issued to another business or a government body on standard payment terms, usually 30 to 90 days. Invoices to consumers, invoices for work not yet finished, progress claims under construction contracts and disputed invoices are generally excluded. Lenders also look at the creditworthiness of your customers, because they are the ones who ultimately pay. A spread of reliable customers strengthens the application.
What happens if my customer does not pay the invoice?
It depends on whether the facility is recourse or non-recourse. Most Australian invoice finance is recourse, meaning if a customer has not paid after an agreed period, commonly 90 days, you repay the advance or replace the invoice with another. Non-recourse facilities include debtor protection so the financier carries the loss for approved customers, at a higher cost. Your broker explains the recourse terms and the concentration limits before you sign.