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NZ B2B Cashflow Invoice Finance vs BNPL

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.

Key point: invoice finance funds invoices you've already issued. PaidTerms: helps close the order by giving buyers instalments, while you get paid upfront and in full.

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

Invoice finance / factoring

Provides working capital by advancing funds against unpaid invoices (then releasing the remainder when paid).

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BNZ CashFlow Plus

Digital invoice financing

A bank-backed invoice finance option that can advance a portion of invoice value for approved invoices.

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Lock Finance

Invoice finance

Funding against invoices, with options that may include more hands-on receivables support.

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Pacific Invoice Finance

Invoice finance

Focused on fast access to invoice cashflow for SMEs.

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Invoice Factoring NZ

Debtor finance / invoice finance

Invoice finance category provider offering advances on invoice value, with fees applied to the service.

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FIFO Capital

Invoice finance

Short-term invoice funding positioned around speed and flexibility.

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Why 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.

Simple positioning line:
"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.