# Invoice finance in NZ: how it works and what it costs

> Invoice finance pays a New Zealand business up to 80% or 90% of an unpaid invoice now, so you are not waiting 30 to 90 days for customers to pay. Compare FundTap, ScotPac and BNZ CashFlow Plus on who qualifies and what it costs.

By Jason Dark, last checked 2026-11-06. Part of [Loans](https://smallbusinessloan.co.nz/loans) on Skipper.

## The short version

- Invoice finance pays you most of an unpaid invoice now, and you repay it when your customer pays.
- FundTap advances up to 90% of an invoice for a fee from 4%, while ScotPac and BNZ CashFlow Plus advance up to 80%.
- FundTap suits small businesses and sole traders, ScotPac needs at least $10,000 of invoices a month, and BNZ needs more than $2.5 million a year in credit sales.
- With FundTap and BNZ, your customers keep paying you as normal and are not contacted.

## What is invoice finance?

Invoice finance turns an unpaid invoice into money now. You've done the work and sent the bill, but your customer won't pay for 30, 60 or 90 days. An invoice finance provider pays you most of the invoice straight away, and when your customer pays, the provider takes back what it advanced plus its fee. Your invoices are the security, so you don't need to offer property.

## Invoice finance providers compared

These details come from each provider's website, checked on 6 November 2026.

| Provider | How much you get | Who it suits | Cost |
| --- | --- | --- | --- |
| [FundTap](https://smallbusinessloan.co.nz/lenders/fundtap) | Up to 90% of each invoice, one invoice at a time | Trading now, with about 3 months of trading and more than $5,000 a month in revenue as a guide | One fee per invoice from 4%; no setup or monthly fees |
| [ScotPac](https://smallbusinessloan.co.nz/lenders/scotpac) | Up to 80% of eligible invoices, with facilities up to $150 million | 6 months of trading and at least $10,000 a month in invoices to creditworthy NZ businesses | Not published |
| BNZ CashFlow Plus | Up to 80% of approved invoices | More than $2.5 million a year in credit sales | A base rate of 6.54% plus a margin, with establishment and purchasing fees |

[Fundme](https://smallbusinessloan.co.nz/lenders/fundme) is a business finance broker that helps arrange invoice-backed finance through its panel of lenders. Fundme mainly works with businesses that invoice other businesses on 30 to 90 day terms.

## How FundTap works

With FundTap, you pick which invoices you want to fund. You don't have to sign up your whole sales ledger. FundTap funds invoices to both businesses and consumers, as long as the work is finished and the invoice isn't overdue. The smallest invoice it funds is $300, and limits usually go up to $300,000. Once you're approved, which usually takes about a day, each invoice is paid within two hours.

In FundTap's own example, it advances $4,050 on a $4,500 invoice due in 30 days and charges $235. That's about 5.8% for a month. FundTap also says that if you fund most of your invoices all the time, a whole-ledger facility or a bank line is usually cheaper.

## How ScotPac and BNZ work

ScotPac and BNZ offer ongoing facilities. You get a limit based on your invoices and can draw funds when you need them. ScotPac can often fund an invoice within 24 hours after your facility is set up. However, ScotPac may not fund invoices sent in stages, in advance or to consumers, so it's best for businesses that bill other businesses for finished work.

BNZ's CashFlow Plus is for larger businesses with over $2.5 million a year in credit sales. You can draw funds online using a dashboard. Interest is charged at BNZ's CashFlow Plus base rate, which was 6.54% a year on 6 November 2026, plus a margin.

## Who invoice finance suits

Invoice finance helps if you invoice customers who pay later and waiting for payment is making cash flow tight. Construction, transport, wholesale, staffing and professional services businesses use it most. But it won't help if you get paid at the till, haven't sent the invoice yet or if the invoice is already overdue.

## Invoice finance or a business loan?

If slow-paying customers are causing cash flow problems, invoice finance ties the cost to the invoices you choose to fund, and you don't need property as security. If you need money for something else, like equipment or a tax bill, look at [asset finance](https://smallbusinessloan.co.nz/loans/asset-finance) or a [business loan](https://smallbusinessloan.co.nz/loans/business-loans). Use the [true cost calculator](https://smallbusinessloan.co.nz/tools/true-cost) to compare costs, and the [eligibility checker](https://smallbusinessloan.co.nz/tools/lender-match) to see how many lenders could consider your business.

## Common questions

### How much does invoice finance cost in NZ?

FundTap charges a single fee per invoice, starting from 4%, and shows you the fee before you confirm. BNZ's CashFlow Plus charges interest at a base rate of 6.54% a year plus a margin, along with establishment and purchasing fees. ScotPac doesn't publish its fees.

### Will my customers know I am using invoice finance?

Not with FundTap or BNZ. FundTap never contacts your customers, and BNZ says you keep confidential control of your customer relationships. Your customers pay your invoice into your account as usual.

### Can a sole trader use invoice finance?

Yes. FundTap funds sole traders, partnerships, companies and trusts that are trading now in New Zealand or Australia and invoice customers on terms. ScotPac and BNZ are aimed at larger businesses.

## Sources

- [FundTap: Eligibility](https://fundtap.co/how-it-works/eligibility)
- [FundTap: Pricing](https://fundtap.co/pricing)
- [FundTap: FAQ](https://fundtap.co/how-it-works/faq)
- [ScotPac: Invoice Finance](https://www.scotpac.co.nz/our-solutions/invoice-finance/)
- [BNZ: Invoice financing with CashFlow Plus](https://www.bnz.co.nz/business-banking/loans-and-finance/invoice-finance)
- [BNZ: Business lending interest rates and fees](https://www.bnz.co.nz/business-banking/loans-and-finance/interest-rates-and-fees)
- [Fundme: Unsecured business loans](https://www.fundme.nz/unsecured-business-loans)