Invoice Finance

That timing gap is exactly the problem Invoice Finance is designed to solve. Rather than waiting out a 30, 60 or 90-day payment cycle, a business can submit an outstanding invoice to ScotPac and receive up to 80% of its value within 24 hours. 

When the customer settles, the remaining balance is released less applicable fees. The invoices themselves serve as security. No property required. 

Traditional business loans and overdrafts typically require real estate or other assets as collateral, can involve longer approval times, and often come with fixed monthly repayments whether trading conditions are good or not. 

Invoice Finance uses outstanding invoices as security, can be approved in as little as 24 hours, and repayment happens when customers pay. There are no fixed monthly repayment schedules in the same way as a traditional term loan. The funding limit can also grow with the business, rather than being capped at a fixed lump sum negotiated upfront. 

Invoice Finance works differently from a traditional loan. It is a working capital facility secured against receivables – money the business has already earned but not yet collected. 

There are no fixed repayment instalments in the same way as a term loan. Repayment happens when customers pay their invoices, rather than on a fixed monthly schedule. For business owners who want access to working capital without taking on a traditional business loan, it is worth understanding the distinction. 

Quite possibly. Banks often focus heavily on credit history, profitability and asset security. ScotPac focuses closely on the quality of a business’s debtor ledger. In other words, how reliable its customers are at paying invoices. 

A business that has been trading for at least 6 months, invoices other businesses, and has creditworthy customers may still qualify even if traditional lending has been out of reach. 

Yes, once a facility is established. ScotPac can typically release funds within 24 hours of an invoice being submitted through the online portal. 

The initial setup does take a short time to arrange, but once the facility is in place, drawing down against new invoices is fast and straightforward. For businesses facing an immediate cash flow need, the sooner a conversation with ScotPac starts, the sooner that facility can be ready. 

Yes. ScotPac requires a minimum of six months of trading history, not years. 

For a growing business that has been generating consistent invoices and has reliable customers, Invoice Finance can be a more accessible option than some business loans, which often require longer operating histories and stronger balance sheets. The focus is on the strength of the customer book, not just how long the business has been around 

Both use unpaid invoices to unlock working capital, but they differ in who manages collections. 

With Invoice Factoring, ScotPac handles accounts receivable and chases outstanding payments on the business’s behalf. This suits businesses without a dedicated collections or accounts receivable team. 

With Invoice Discounting, the business retains control of its own collections and customer relationships. The arrangement can remain confidential. This suits businesses with established debt collection processes or those that want to keep managing customer relationships directly. 

Not necessarily. Some Invoice Finance facilities can be structured confidentially, while others involve ScotPac supporting receivables and collections more directly. 

The right structure depends on how your business manages customer relationships and how much support you want with collections. 

Once a funding facility is established, ScotPac provides new bank account details for customers to direct payments into. Depending on the facility type chosen, the payment notice can appear on ScotPac’s letterhead or the business’s own, keeping the arrangement confidential if needed. 

ScotPac works proactively to reduce this risk before it arises, including reviewing debtors as part of setting up the facility. 

If invoice non-payment is a concern, you may want to consider adding Bad Debt Protection to your facility. This can help safeguard your working capital and provide added peace of mind. 

A ScotPac specialist can talk through the options and help you understand the right level of protection for your business. 

Minimal. ScotPac provides a straightforward online portal where invoices can be uploaded, funding limits viewed and reports downloaded as needed. 

Depending on how your facility is structured, your business may continue managing collections, or ScotPac may provide more support with receivables and collections. Either way, a dedicated ScotPac relationship manager is available throughout. 

Invoice Finance works differently from a traditional loan. Rather than borrowing a fixed lump sum, the business is accessing a portion of income it has already earned but not yet collected. 

It does not operate like term debt, which is one reason many New Zealand business owners may prefer it over taking on a formal business loan. For specific accounting treatment, speak with an accountant familiar with your facility structure. 

ScotPac can arrange Invoice Finance facilities up to NZD $150 million, accommodating businesses at every stage of growth.  

The advance rate is up to 80% of eligible invoice value. So if a business submits $100,000 in eligible invoices, it may be able to access up to $80,000 sooner. The remaining balance is released once customers pay, less applicable fees. 

Facility limits are not fixed in the same way as a lump-sum loan. They can grow in line with the sales ledger, subject to eligibility and facility terms. 

Yes, and this is one of the key advantages of Invoice Finance over a business loan. Because the facility limit is tied to eligible invoice volume rather than only a fixed credit decision made at the outset, it can increase as sales grow. 

The facility is designed to scale with the business, subject to eligibility and facility terms. 

In most cases, no. ScotPac’s Invoice Finance facility does not require real estate or banking security, so it can sit independently of existing banking arrangements. 

Many New Zealand businesses run a ScotPac Invoice Finance facility alongside their main bank account. It may also reduce the need to draw on an overdraft, freeing up that capacity for other purposes. 

Invoice Finance works best for businesses that sell to other businesses on credit terms and have reliable customers who pay, even if slowly. 

If the main cash flow problem is the gap between invoicing and receiving payment, rather than a lack of sales, Invoice Finance directly addresses that. Industries like transport, construction, wholesale, manufacturing, recruitment and professional services use it regularly for exactly this reason. 

The best way to know if it suits a specific situation is to speak to a ScotPac lending specialist.