Invoice Factoring in NZ vs PaidTerms: Which Gets You Paid Upfront Faster?
Invoice factoring (invoice finance) can unlock cash from invoices you've already issued — but PaidTerms changes how your buyer pays so you can get paid upfront at the point of sale.
What invoice factoring is (simple explanation)
With invoice finance, a lender advances part of the value of an invoice (often 80–90%). When your customer pays, you receive the remaining balance minus fees.
Side-by-side: invoice finance vs PaidTerms
| Category | Invoice factoring / invoice finance | PaidTerms B2B BNPL |
|---|---|---|
| Best for | Working capital against receivables you've already issued | Winning bigger orders + offering instalments while still getting paid upfront |
| Upfront payout | Typically an advance (often ~80–90%), remainder later minus fees | Upfront & in full (you receive the full invoice amount) |
| When it helps | After the sale (you've issued the invoice) | At quote / invoice stage (helps the buyer say yes) |
| Customer experience | May be invisible, or customer may pay the finance provider depending on structure | Buyer chooses instalments (3, 6, 9 months) via a dedicated payment link |
| Sales impact | Indirect (cashflow), doesn't inherently increase order size | Direct (instalments reduce sticker shock, increase AOV, reduce discount pressure) |
| Admin | Ongoing reporting, facility management, reconciliations, eligibility rules | Simple: generate a link, buyer pays in instalments, you get paid upfront |
Common invoice finance options you'll see in NZ
These are typical invoice finance / debtor finance providers you may come across. This list isn't exhaustive — it's here to help you understand the category quickly.
ScotPac
Provides working capital by advancing funds against unpaid invoices (then releasing the remainder when paid).
Visit websiteBNZ CashFlow Plus
A bank-backed invoice finance option that can advance a portion of invoice value for approved invoices.
Visit websiteLock Finance
Funding against invoices, with options that may include more hands-on receivables support.
Visit websitePacific Invoice Finance
Focused on fast access to invoice cashflow for SMEs.
Visit websiteInvoice Factoring NZ
Invoice finance category provider offering advances on invoice value, with fees applied to the service.
Visit websiteFIFO Capital
Short-term invoice funding positioned around speed and flexibility.
Visit websiteWhy PaidTerms is often better than invoice financing
Invoice finance helps after you've made the sale. PaidTerms helps you win the sale and still get paid upfront. Instead of waiting for a debtor to pay (or getting only a partial advance), you can offer instalments to buyers and receive the full invoice amount upfront.
"Invoice finance funds invoices you've already issued. PaidTerms helps close bigger orders by letting buyers pay in instalments — while you get paid upfront."
Want to offer instalments and still get paid upfront?
PaidTerms gives you a dedicated payment link for instalments (3, 6, or 9 months). You get paid upfront and in full,
your buyer gets the flexibility.
Read more about how payment terms affect the cash conversion cycle.
