SME Recovery
Loan Scheme

Get your business back on track
by unlocking cash from your customers’ unpaid invoices

Our customers sayExcellent
  • Line of Credit from

    $50k - $5 million

  • Approval as fast as

    24 hours

  • Keep your cash flow


What is the SME Recovery Loan Scheme?

The SME Recovery Loan Scheme is designed to help small to medium-sized businesses recover from the ongoing effects of COVID-19 with affordable business loans.

While the Australian economy is bouncing back quickly, there are many small to medium enterprises (SMEs) that need a bit of support to get back on track.

The Government's SME Recovery Loan Scheme allows Earlypay to continue to support SMEs with cost-effective finance solutions through this period of economic recovery.

How can the SME Recovery Loan Scheme help?

Through our partnership with the Federal Government, eligible businesses can get an Invoice-Backed Line of Credit of up to $5 million.

Our Invoice-Backed Line of Credit unlocks cash tied up in your receivables — so you can access cash before your customers have paid their invoices, helping to manage cash flow shortfalls.

The SME Recovery Loan scheme is available to help with:

  • Covering overheads
  • Purchasing property (excluding residential property)
  • Refinancing existing loans
  • Business acquisition
  • Supporting investment

Earlypay’s support package for Australian SMEs

Easy and quick access to finance via our Invoice-Backed Line of Credit.
Easy and quick access to finance via our Invoice-Backed Line of Credit.

Line of credit from $50k to $5m
Line of credit from $50k to $5m

Interest rates capped around 7.5%
Interest rates capped around 7.5%

Funding for a broad range of business purposes
Funding for a broad range of business purposes

Finance is backed by unpaid invoices not real estate security
Finance is backed by unpaid invoices not real estate security

Is my business eligible for the SME Recovery Loan Scheme?

To meet the eligibility criteria for the SME Recovery Loan Scheme and Earlypay's lending criteria, your business must have:

  • an annual turnover of less than $250 million
  • an ABN or ACN
  • invoices issued after goods or services have been delivered to other Australian SMEs
  • been adversely economically impacted by COVID-19; or
  • been the recepient of a JobKeeper payment between 4 January 2021 and 28 March 2021
  • SME Eligibility Declaration

All Invoice-Backed Line of Credit contracts under the scheme must be entered into by 30 June 2022.

Businesses love Earlypay

Free up cash flow with a Recovery Loan

Have a chat with our team to see how we can help your business bounce back


  • My business was impacted by the March 2021 floods, can I apply for a loan under the Scheme?

    Unfortunately, loans under the Scheme for SMEs in eligible Local Government Areas affected by the floods ended 31 December 2021. If you're looking for finance to help manage your cash flow and improve your financial situation, please get in contact to discuss your circumstances.

  • What loan term is available under the Scheme?

    Under the Scheme, a loan term of up to 10 years with an optional repayment holiday period is available. However, with our Invoice-Backed Line of Credit, the repayments are made as your customers pay their invoices, so you don't need to worry about making regular repayments like you would with a business term loan.

  • What is the SME Guarantee Scheme?

    The Coronavirus SME Guarantee Scheme was announced as part of the government's $66 billion stimulus package back in March 2020 to provide Government guaranteed loans for businesses experiencing financial difficulty. The scheme has since been updated and is now known as the SME Recovery Loan Scheme.

  • Can I purchase property with a loan under The Scheme?

    You are unable to purchase residential property, but all other types of property are allowed with an eligible loan — including refinancing owner-occupied commercial property. However, our Invoice-Backed Line of Credit will likely not be a viable finance option for purchasing property.

  • Do loan limits apply?

    Borrowers cannot take a loan amount of more than $5 million under the scheme. This includes amounts from other participating lenders.

  • Can self-employed individuals get a loan?

    Loans under the scheme are available to all structures (including self-employed, partnerships and companies) to suit a range of business needs (including to support investment), as long as the business meet the eligibility and lending criteria at the date of loan agreement.

  • Can non-profit businesses get a loan under the scheme?

    Yes, not for profits are eligible if they meet the eligibility criteria.

  • Can Earlypay's existing customers get a loan under the scheme?

    Absolutely! If you meet eligibility criteria, you may get a loan under the scheme. If you're one of our medium or small business customers, get in touch with your Relationship Manager.

  • What cannot be financed with funds from the Scheme?

    Loans issued under the Scheme cannot be used to purchase residential property, purchase financial products, lend to an associated entity (such as self-managed super funds), or rent, lease, hire or hire purchase existing assets that are further than halfway into their effective life.

  • How long is the SME Recovery Loan Scheme available?

    In response to the ongoing economic impact of COVID-19, on 13 December 2021, the Government announced an extension to the Scheme to provide continued assistance to eligible small to medium businesses.

    The Scheme Rules were amended and came into effect on the 2022 Scheme Expansion date of 1 January 2022. The current Scheme Rules are in force until 30 June 2022, offering cheaper credit with a Government guarantee of 50 per cent to businesses adversely economically affected by the pandemic.

  • What if I can't afford to make repayments on the business loan?

    Our Invoice-Backed Line of Credit works differently from regular secured or unsecured loans. The line of credit is based on the value of your outstanding invoices. So, as your customers pay their invoices, the finance is repaid.There's no need to worry about a repayment holiday!

    Our Line of Credit works as follows:

    • Invoice your clients as you normally would.
    • Provide Earlypay with the details of the invoices you would like to fund. (If you use Xero or MYOB AccountRight Live, Earlypay can source your invoice details through our clever integration. If you don't use these online accounting platforms, you can upload the invoice details to our platform.)
    • 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.
  • Can I refinance pre-existing debt under the Government SME Recovery Loan Scheme?

    Yes, you may be able to refinance an outstanding loan balance under the Scheme if you are an eligible borrower.

  • Is Invoice-Backed Line of Credit an unsecured loan?

    No. The collateral requirements are similar to an unsecured loan as we do not need any assets for security — except your outstanding invoices.

    The Line of Credit does not work like normal business loans. Rather than a lump sum of money, you are approved for a credit limit. You can access as much cash as you need, when you need it, up to your credit limit — which helps to preserve your working capital.

  • What security is needed for the business finance?

    Your receivables (outstanding invoices) are the only security we need for our Line of Credit. So, you don't need to worry about using residential or commercial property (or any other assets) as collateral like you do with secured loans. Your invoices must be issued to other Australian businesses — we are unable to provide a Line of Credit to businesses operating in the retail space.

  • What is an Invoice-Backed Line of Credit?

    An Invoice-Backed Line of Credit is an amount of credit extended to you based on the value of your customers' unpaid invoices. Because it is a Line of Credit, you are free to draw down funds as you need — while only paying interest on the amount actually drawn down.

© 2021 All rights reserved. Australian Credit Licence 098 952 277

Level 11, 201 Miller St.
North Sydney NSW 2060
Level 13, 390 St Kilda Road
Melbourne VIC 3004
Level 10, 410 Queen St.
Brisbane QLD 4000

© 2022 All rights reserved.