Business Line of Credit

How Earlypay's Line of Credit works

• Invoice your clients as you normally would.
• Provide Earlypay with the details of the invoices you would like to fund. Earlypay can source your invoice details through our clever integration with Xero or MYOB AccountRight Live.
• Receive up to 80% of the value of your funded invoices upfront.
• Your customers pay invoices into a collections account set up in your name which repays the outstanding finance and the excess becomes available to you.

Will my customers know that I'm using a Line of Credit?

Not necessarily. It depends on how your facility is set up.

Earlypay offers both Confidential and Disclosed credit lines:

• With a Confidential Line of Credit, you stay in control of customer communications and collections. Your clients won’t know you're using finance, and invoice payments continue as usual.
• A Disclosed Line of Credit does involve notifying customers, as they pay Earlypay directly. This setup allows us to offer more flexible funding, especially for businesses with limited trading history or credit challenges.

Either way, your facility is backed by your outstanding invoices — not your property or other business assets. We’ll work closely with you to choose the approach that best suits your business and customer relationships.

How do I access my Business Line of Credit facility?

You will be given access to an online portal where you can view your invoices and funding availability, request drawdowns and download reports.

Why would I use a Business Line of Credit instead of an Unsecured Business Loan?

A business line of credit is generally more flexible than Unsecured Business Loans because you can access funding as and when you need the cash flow. It is also an ongoing facility that can grow with your sales.

Unsecured Business Loans provide a lump sum amount that is repaid with regular repayments over a fixed term whereas the repayment of a line of credit occurs when customers pay the invoices that were financed.

A business line of credit is often more cost effective than unsecured business loans as it uses the accounts receivable ledger of your business as security, making it less risky for the invoice financier.

Business loans require businesses to have been operating for a minimum period and show evidence that the repayments can be adequately covered by revenue. A line of credit can be a great solution for businesses that have invoices eligible for financing but don't quite satisfy the requirements for unsecured business loans.

If you're business has a short trading history, less than perfect credit score or ATO debts, you may still be eligible for a line of credit facility with Earlypay.

What is a Business Line of Credit?

A Business Line of Credit is a type of finance that provides funding based on outstanding invoices. Businesses can receive 80% of the value of invoices upfront which increases cash flow that can be used for operational costs or to invest in growth opportunities.

As a line of credit is supported by outstanding invoices, the amount of available funding grows with your sales and can be used by early-stage, growing and established businesses across a wide range of industries.

What are the Pros and Cons of a line of credit?

Pros

• Immediate cash flow
• Ongoing access to finance
• Backed by invoices, not real estate
• High approval rates
• No regular fixed loan repayments
• Option to outsource collections

Cons

• Costs higher than real estate backed finance

What is Confidential Line of Credit?

Confidential line of credit is when Earlypay provides funding of your invoices and your customers are not aware that there is a finance facility in place. A confidential line of credit is generally offered to businesses with a strong track record.

What is Disclosed Line of Credit?

A disclosed line of credit is the arrangement where your customers are aware that Earlypay is financing your invoices. Disclosed arrangements generally involve Earlypay managing the collection of your invoices and we may contact your customers on your behalf to ensure they pay your invoices. This is a useful arrangement for businesses that have small finance teams or simply choose to outsource this function and focus on other areas of their business.

Is a line of credit right for my business?

A line of credit is a very flexible form of business finance that can be tailored to suit the needs of your business. In addition to unlocking cash from unpaid invoices, Earlypay's line of credit can also include collections management services, allowing businesses to focus resources on other areas.

Lines of credit is used by businesses across a wide range of industries including Wholesale trade, Transport, Manufacturing, Recruitment, Labour hire, Business services and many others.

Unlike other types of small business loans, our Business Line of Credit does not require commercial property or residential property to be offered as security.

Start-ups, Growing and Established businesses are all eligible for a line of credit and we’d love to hear from you even if you have a short trading history, less than perfect credit score or ATO debts.

Given the flexible nature of our line of credit, and the fact that every business is different, it's best to speak to our experienced team to design a solution that works best for you and your business.

Can I use a line of credit if I have debt with other lenders?

Yes. We are mainly concerned with having security against your accounts receivable and can work alongside other lenders.

Is a line of credit suitable for start-ups?

Yes! We love supporting early stage businesses. If you have outstanding eligible invoices, we can help with the cash flow your business needs to grow with invoice factoring.

Can you help if my business has ATO tax debt?

Yes. A line of credit can be suitable for businesses that have ATO debts and is often available when other types of business loans are not.

How do I apply for a Business Line of Credit?

Getting started is simple. Just hit the sign-up button and share a few basic details. We’ll take it from there.

If you use Xero or MYOB AccountRight, you can fast-track your application by securely linking your accounting software. This gives Earlypay access to key financial data, including invoices, payments, bank transactions, and reports, so we can assess your eligibility quickly and accurately.

Prefer not to connect your software? No worries. We’ll guide you through alternative options.

How long will it take for my finance to be approved?

We aim to let you know within 24 hours if your finance has been approved or not.

How long will it take to receive funding?

We aim to advance funding within 24 hours of approving your finance.

How much finance can I get?

Earlypay offers Business Line of Credit facilities from $100,000 to $10 million, with funding based on the value of your outstanding invoices. Typically, you can access up to 80% of your eligible receivables. In some cases, you may be able to access up to 90%. For example, if you have $500,000 in qualifying invoices, your available credit could be around $400,000. We also offer flexibility to exceed this in certain circumstances.

What invoices can I fund?

Invoices must be issued to registered Australian businesses and companies (have an ABN) for goods delivered or services completed. To qualify, the invoices must be:

• Unpaid and outstanding
• Less than 90 days old from the issue date. We don’t accept outstanding invoices older than this
• Related to work that’s already been completed

How much does a Business Line of Credit cost?

The interest rate charged on line of credit ranges between 7.99% and 13.95% per annum. Depending on how you would like your facility to work and any additional services (eg. collections management), there may also be Drawdown or Administration fees.