Invoice payment plans explained: how paying suppliers over 26 weeks works
Most Australian businesses do not fail because they lack orders - they get stuck because the cash for the next order is tied up in the last one. An invoice payment plan solves that timing problem: your supplier is paid in full today, and you repay the amount in equal weekly instalments.
This guide walks through exactly how a Funding Loop Pay plan works, who pays what, and what to check before you apply.
What is an invoice payment plan?
An invoice payment plan lets your business buy goods from a supplier now and spread the cost over time. With Funding Loop Pay, that means any supplier invoice from $500 to $20,000 is paid to your supplier in full, upfront - and you repay the total across 26 equal weekly payments.
It is not a loan in the traditional sense: there is no interest, no compounding, and no rate that can move. You pay one flat 8% fee on the invoice amount, agreed before you commit, and it never changes.
How the money moves
There are three moments in every plan. First, you apply: search your ABN, tell us your average monthly turnover, and upload the supplier invoice - it takes about two minutes. Second, approval: a real person confirms your limit by phone, usually within an hour during business hours. Third, repayment: 26 equal weekly payments come out automatically, and the plan closes itself.
Your supplier's experience is even simpler - they receive the full invoice amount upfront and take on zero risk or delay. If they are not registered with Funding Loop Pay yet, we onboard them at no cost.
What it costs
Merchants pay nothing to offer Funding Loop Pay: no commission, no merchant fees. The buyer's flat 8% fee is the entire cost of the arrangement.
- One flat 8% fee on the invoice amount - the only cost
- No interest and no compounding, ever
- No setup fees, no monthly fees, no annual fees
- No early repayment penalty - pay it out any time and simply close the balance
Who is eligible
Checking your eligibility takes about two minutes and has no credit impact - it uses public ABR data only. If you proceed with a formal application, approval is subject to a credit assessment.
- Registered Australian Company or Trust (ABN required)
- Trading for at least 12 months
- Monthly turnover of $10,000 or more
- Invoice between $500 and $20,000
- Buying goods from an Australian supplier
Is it right for your business?
Invoice payment plans suit businesses that buy from other businesses: wholesalers ordering stock, retailers stocking up for peak season, manufacturers buying materials, and trades purchasing tools and equipment. If a large upfront payment would strain your working capital but the purchase pays for itself over the following months, spreading it over 26 weeks usually makes commercial sense.
If you are unsure, the eligibility check is free, takes two minutes, and there is no obligation to use your limit once approved.