Invoice financing is a powerful way for businesses to unlock cash tied up in unpaid invoices. If you’re waiting 30, 60, or 90 days for customer payments, invoice finance lets you access funds immediately — boosting cashflow and allowing your business to grow without the wait.
In this guide, we’ll explain how invoice financing works, who it’s best for, and how to access it quickly with CPFI.
What is Invoice Finance?
Invoice finance (also called accounts receivable financing or invoice factoring) is a type of business loan where a lender advances you a percentage of your unpaid invoices upfront. Once your customers pay, the lender takes their cut and you receive the balance.
It’s ideal for B2B businesses with consistent invoicing — suppliers, contractors, wholesalers, and service providers all benefit. You get working capital now, not later.
How Invoice Finance Works
The process is straightforward:
You invoice your customer — as usual.
You submit the invoice to us — we assess the invoice and your customer’s creditworthiness.
We advance funds — typically 85-95% of the invoice value within 24-48 hours.
Customer pays us — when payment arrives, we take our fee and release the balance to you.
No complex terms. No collateral. Pure cashflow relief.
Who Benefits Most From Invoice Finance?
Invoice finance is perfect for:
Growing businesses needing working capital to scale
B2B companies with invoiced sales to creditworthy customers
Seasonal businesses needing bridge funding between busy and slow periods
New businesses that don’t yet qualify for traditional bank loans
Suppliers and contractors waiting weeks for large customer payments
Invoice Finance vs. Business Loans: Key Differences
Unlike traditional business loans, invoice finance:
Has no fixed repayment schedule — funds come in as your customers pay
Scales with your sales — more invoices = more available funding
Requires no personal guarantee or asset collateral
Is faster to approve — typically 2-5 business days
Costs less if you’re only borrowing short-term
FAQ — Invoice Finance Questions Answered
Q1: Will my customers know I’m using invoice finance?
Typically no. With confidential invoice finance, customers send payment directly to your account and won’t see any indication of financing. With disclosed factoring, invoices show the financier’s details — less common but sometimes required for high-risk customers.
Q2: What invoices can I finance?
We’ll finance invoices from creditworthy businesses (usually B2B). Consumer debts, invoices more than 90 days old, and disputed invoices typically can’t be financed. We assess each invoice on its merits.
Q3: How much does invoice finance cost?
Costs vary based on invoice size, customer creditworthiness, and financing term. Expect 1-3% of the invoice value as a discount fee, plus a small handling fee. It’s still cheaper than overdraft interest if you’re only borrowing for 30-60 days.
Get Started With Invoice Finance Today
If your business is waiting on invoices and you need working capital now, CPFI can help. We’ve funded thousands of invoices for Australian businesses.
Ready to unlock your cashflow? Explore our business finance options or contact us for a quick quote. Most approvals happen within 48 hours.