Invoice Finance with ScotPac.

Put tomorrow’s payments into your
business, today

Unlock the value in your invoices

Line of credit with no need for property security

Facilities from $10K to $150M

What is Invoice Finance?

Are cash flow gaps impacting your day-to-day operations or preventing you from taking on new opportunities?

ScotPac Invoice Finance (also known as Invoice Factoring or Debtor Finance) helps you turn your outstanding customer invoices into a source of readily available funding. You can access an immediate cash injection to cover new opportunities, or costs such as wages and suppliers.

With Invoice Finance, you can access a line of credit with no property security required. Facility limits range from $10K to $150M to support every business size.

Our facility limits grow in-line with your business. You don’t have to spend valuable time re-negotiating limit increases. Our local decision-makers and dedicated relationship managers work with you to understand your unique position and support you as your business needs change.

Choose between a confidential funding arrangement or take advantage of an end-to-end accounts receivables and collection service. Spend less time chasing payments and more time securing new opportunities.

Enjoy the certainty of a fixed-term facility or the convenience of a flexible contract with no minimum term.

Fast funding

Funds available in as
little as 24 hours

Tailored to you

A range of funding solutions
available to suit your business


Choice of fixed or no
minimum term contract
The experience with ScotPac has been light years ahead of anything else. And every person we talk to at ScotPac has a happy face.
Hamish MacLachlan - General Manager, Bramble & Hedge
The experience with ScotPac has been light years ahead of anything else. And every person we talk to at ScotPac has a happy face.
Hamish MacLachlan - General Manager, Bramble & Hedge

Why ScotPac?

We believe in relationships, not transactions, and make it our business to know yours. With over 30 years' experience, you can count on us to see the true value of your business.
Trusted Lending more than $1b to SMEs, we’re Australia and New Zealand’s largest non-bank lender, with the awards to match.
Unlocking Growth We’re growth enablers, unlocking the potential in your business. On average our customers grow 3x faster than the average business.
Flexible Finance We find a way to say “yes”. We’re with you through the good times and bad, always adapting to your business needs.
Unlocking Growth We’re growth enablers, unlocking the potential in your business. On average our customers grow 3x faster than the average business.
Flexible Finance We find a way to say “yes”. We’re with you through the good times and bad, always adapting to your business needs.
Trusted Lending more than $1b to SMEs, we’re Australia and New Zealand’s largest non-bank lender, with the awards to match.

Who does
it suit?

Enquire Now

Our range of Invoice Finance solutions are suitable for any business or company selling to other businesses on standard trade credit terms. Useful for small to medium businesses with large debtors who are slow to pay, causing a gap in cash flow or those with seasonal cash flow cycles. We also provide funding for Enterprise businesses affected by late payments or extended payment terms, such as 90 days or more.

Some key industries we support:

Recruitment & Staffing
Wholesale Trade
Transport & Storage

For more information about how we can help your business, fill out an enquiry form or call us today.


What is ScotPac Invoice Finance?

ScotPac Invoice Finance is a type of business finance that allows a company, small business, or sole trader to access a line of credit secured by outstanding invoices. Depending on the facility type, an entire ledger or a single invoice could secure the funding limit. More flexible than a business loan, Invoice Finance is also known as “Invoice Discounting” or “Debt Factoring”.

What is the difference between Invoice Finance and Factoring?

Invoice factoring is generally a funding facility where the lender manages your accounts receivable and collections. This is beneficial for businesses that don’t have a dedicated accounts department. It enables you to spend more time growing your business with sufficient cash flow rather than chasing payments and accounts management.

With Invoice Finance or Invoice Discounting, you send your invoice details to the lender, but your business retains control over collecting the outstanding invoices. The funding facility is usually strictly confidential. Due to the collections service, factoring fees are generally higher than the fees paid for Invoice Discounting.

Are there different types of Invoice Factoring?

There are two main types of invoice factoring: recourse and non-recourse factoring. 

In a recourse factoring arrangement, the risk of non-payment of the invoice remains with your business. If your customer is unable to pay, you will need to cover the cost of the financing you received from the factoring company. 

With non-recourse factoring, you essentially sell the invoice. Once you have received funding, the factoring company is responsible for collecting the debt. Because of the increased risk, factoring companies generally charge higher fees for non-recourse factoring. 

With ScotPac, you can mitigate the risk of non-payment with Bad Debt Protection. This additional service protects your business cash flow in the event of customer non-payment. 

How is Invoice Finance different from a bank loan?

While traditional business loans and overdrafts typically require real estate collateral, Invoice Finance uses your accounts receivables as security. You can get paid faster for the goods and services you have already sold.

You get an immediate cash advance on your unpaid invoices, with the finance company charging a small percentage as a fee for the facility.

Unlike a traditional business loan, you can be approved for a Debt Factoring or Discounting facility and access a cash advance in as little as 24 hours. There are no fixed monthly repayment terms, and you can choose how many invoices you want to submit for financing.

Is Invoice Finance better than an unsecured business loan?

Invoice Financing is more flexible than an unsecured business loan. With an unsecured loan, you receive a lump sum from the lender. Over the term, you repay the loan principal plus interest through regular repayments.

An Invoice Finance facility provides access to funding as and when you need it. You can fund an invoice when you need a cash flow boost, and the repayment happens automatically when your customer pays the invoice. 

Invoice Financing is also more accessible. Most loan providers require a business to have a long trading history and a strong credit rating. An Invoice Finance company is more interested in the ability of your customer to pay the invoice. Your receivables provide the security you need to access funding. 

Is Invoice Financing a good idea?

Invoice Financing unlocks the cash tied up in your unpaid invoices. So you can buy equipment, pay wages, purchase more stock and much more. Our solutions can be tailored to fit your business needs, with flexible funding options and a dedicated team to support you and your business goals.

Is Factoring considered debt?

Debt Factoring is an external source of funding that helps companies improve business cash flow. Factoring does not involve either the business or the Debt Factoring company acquiring or issuing debt. A business can raise capital to improve cash flow by selling its outstanding receivables to a Debt Factoring company.

Debt Factoring is considered a financial transaction and not a loan. In contrast to a traditional business loan, there are no restrictions on how you choose to use the cash advance.

Is Debtor Finance suitable for start-ups?

Yes. A Debtor Finance facility can be an excellent option for a growing start-up or small business. It can help to improve cash flow management and fuel sustainable long-term growth.

Due to strict lending criteria, traditional loans and overdrafts are usually out of reach for start-up companies. We are interested in where you are headed, not how many years you have been in business. Call the number below and speak to one of our financial advisors to see which finance product is the best option for your growing business.


How does Invoice Financing work?

Invoice financing is for businesses that sell to other businesses (B2B).

You continue to invoice your customers as usual. When an invoice is raised, you upload it to our system. We will pay you up to 95% of the invoice value within 24 hours*. Depending on your facility type, we’ll handle all outstanding payments for you, or you can choose to do it yourself. You’ll receive funds equal to the remainder of the invoice value once the debtor pays the invoice, less our fees.

In some cases involving factoring, your customers (debtors) will be aware of our involvement in the transaction. ScotPac also offer confidential Invoice Finance facilities where your debtors will not be aware of your funding arrangement. You will continue to manage your accounts receivables.

Will my customers be notified?

It depends on the type of Invoice Finance facility you choose. With Invoice Factoring, we’ll handle your accounts receivable and collections administration as a third party. So your customers will be aware of your partnership with ScotPac.

If you would like a confidential arrangement, ask one of our friendly business finance specialists about Invoice Discounting. You can manage your accounts receivable and collections with the funding arrangement remaining confidential.

Who do my customers pay – into what bank account?

Once your funding facility is in place, we will provide your customer with new bank account details. Depending on your facility type, this ‘Notice of Transfer’ can appear on our letterhead or yours.

What happens if my customer doesn’t pay an invoice?

We work hard to ensure that doesn’t happen. We’ll conduct credit checks to help you avoid overextending with a customer that may struggle to pay. If you are worried about how an invoice non-payment could impact your finances, you can include Bad Debt Protection as part of your credit facility to protect your working capital.

How flexible is the facility in terms of agreeing on increases in limits?

We work hard to ensure you’re set up with the best funding solution for your current needs. On average, our customers grow at 3x the rate of Australian GDP. We’re very flexible when it comes to accommodating business growth, acquisition and other opportunities.

We understand the highs and lows that business owners face and adapt to your ever-changing needs and cash flow requirements.

Is the facility easy to manage once in place?

Yes, you will be able to access an easy-to-use online portal. You can upload outstanding invoices, view your funding limits, and download reports.


What information do I need to provide?

We can get you up and running with just some basic information. You don’t need to provide access to your accounting software or fill in any complicated paperwork. Generally, we need you to send:

  • An invoice to be funded
  • A summary of aged payables & receivables
  • Your ATO portal
  • Most recent financial statements (profit & loss, balance sheet)
  • Personal asset & liability statement

Talk to one of our friendly business finance specialists today to discover which funding solution is best for you.

How quickly can I get the facility in place?

Once you get started and receive approval, we can fund your unpaid invoices in as little as 24 hours. Unlike many lending providers, we don’t make you jump through hoops and meet strict lending criteria to access credit. Your outstanding invoices are the only collateral you need. We don’t require any property security.

How much finance can I get?

ScotPac offers receivables financing facilities for $10k up to $150m. We can help businesses of all sizes to access funding. You can access up to 85% of the value of your outstanding sales invoices. For example, if you submit $100k of eligible invoices, we will usually be able to provide a cash advance of $85k. 

How much does Invoice Financing cost?

The cost varies depending on the number of invoices submitted for funding and the type of facility requested. We offer a range of funding solutions and services to suit your needs.

A full-service factoring solution including accounts receivable and collections management can be most beneficial for a small business. Medium to large companies needing an immediate cash injection can benefit most from a come-and-go line of credit with no lock-in contract.

As the largest working capital lender in Australia and New Zealand, you’ll find our prices to be highly competitive. Our funding specialists can talk you through all the costs of an Invoice Finance facility today!

I’ve got ATO arrears, can you still assist?

Yes! ScotPac funding solutions can be used to pay ATO (Australian Taxation Office) debt or maintain an existing ATO payment arrangement.

Even if you don’t meet the credit criteria for a traditional business loan, we can turn your unpaid invoices into a business cash flow boost. We’ll help you avoid any ATO penalties and fees and get your finances back on track.

Will the Invoice Finance arrangement affect any existing financial arrangements?

As we don’t require real estate security, our receivables finance solution can sit alongside your existing banking arrangements. What’s more, you may find you have little need for your overdraft or other funding as you can access all the cash flow you need from within your business.

Not sure if Invoice Finance is right
for you? We offer other finance solutions

Learn more

Call us to discuss how we can
finance your business 1300 505 883