Invoice Finance for Equipment Hire Companies

Key highlights

• Advance cash on hire invoices to account customers fast
• Keep the fleet serviced and staff paid between settlements
• Available limit grows with your hire invoicing volume
• Low-doc options can use BAS or bank statements to qualify
• Compare 80+ lenders on one application with Overdrive

Big fleet investment, delayed returns

An equipment hire company sinks substantial capital into its fleet and recovers it slowly, one hire invoice at a time. You buy or finance machines, plant and tools, put them out on hire, and invoice account customers such as builders, contractors and industrial clients who usually pay on 30 to 60 day terms. All the while the fleet needs servicing, repairs, insurance and registration whether it is earning or idle, staff are on the payroll, and demand fluctuates with project cycles. That mix of heavy capital committed and slow-paying hire accounts leaves many companies cash-tight even with strong utilisation. Invoice finance is designed to unlock the cash already owed to you and keep it circulating.

The way the funding works

Invoice finance releases most of a hire invoice's value soon after you issue it, rather than leaving you to wait out account terms. When you invoice a creditworthy customer, the lender advances a large share up front and pays the balance, less a fee, once the customer settles. Because the facility is secured against invoices you have already earned, the available cash scales with your hire volume instead of sitting at a fixed cap. For eligible applicants, funds can land within a day or two of invoicing, subject to lender criteria and assessment, which keeps maintenance, wages and expansion moving rather than waiting on the debtor ledger.

How hire companies use the cash

Released funds usually go straight back into keeping the fleet productive: servicing, repairs, replacement parts and tyres, and the wages of drivers, mechanics and yard crew. It also covers fleet-wide insurance and registration, funds a depot or workshop upgrade, and bridges tax or ATO obligations in quieter months. Frequently it goes toward expanding the fleet to meet rising demand, sometimes as an unsecured working-capital route rather than traditional asset finance. Because the money is drawn from invoices you are already owed, it supports upkeep and growth without stacking heavy fixed repayments onto revenue that can swing with seasonal and project-driven demand across your customer base.

The right facility for your company

Invoice finance suits hire companies with substantial account work, but it often pairs with other products. A business overdraft or line of credit covers smaller, irregular costs with draw-as-needed flexibility. An unsecured business loan funds a defined purchase without tying up property, while a secured loan suits larger fleet expansion or premises. Many companies run an invoice facility for cash flow and a term loan for major equipment purchases. The right structure depends on your turnover, security and how much of your revenue is on account, which is precisely the kind of side-by-side comparison a broker performs across multiple lenders so you get the best-fitting combination.

Qualifying your company

You generally need an active Australian ABN and to be invoicing businesses on credit terms rather than relying only on cash hires. Lenders usually look for a minimum trading history, often six to twelve months, a workable monthly turnover, and account customers with a record of paying. Low-doc options may accept bank statements, BAS or your debtor ledger in place of full financials, which suits companies with fluctuating utilisation. Newer hire companies can still be considered subject to criteria. Because the lender advances against your customers paying, the reliability of the contractors and clients you invoice counts heavily in the assessment alongside your own trading position and fleet.

Funding size and speed

Depending on the product and your circumstances, funding is generally available from around $5,000 up to $5 million, with unsecured facilities typically up to $500,000 and larger amounts where security is offered. These figures are indicative and subject to lender criteria and assessment. Invoice finance limits usually expand with your hire invoicing, so available cash grows as demand for your fleet builds. For eligible applicants, same-day pre-approval and funding within 24 to 48 hours may be possible, which can decide whether a machine is repaired and back on hire today or whether a wage run is met while several large hire invoices are still within their account terms.

One application, lenders compared

Lender appetite for equipment hire companies varies with fleet size, customer mix and contracts, so approaching banks individually is slow and can leave repeated marks on your credit file. Overdrive Business Loans lets you apply once, with dedicated broker Simon Kendrick comparing a panel of 80+ banks and non-bank lenders for you. You get options side by side on advance rate, fees, flexibility and price, from a single conversation and one credit footprint. Rates are profile-dependent, starting from around 7.49% p.a. for stronger secured facilities, with unsecured and short-term products priced higher depending on turnover, term, security and credit profile.

If unpaid hire invoices are stranding capital your company needs for upkeep and expansion, it is worth exploring a facility. Overdrive Business Loans offers an obligation-free quote using a soft credit check only, so looking at your options leaves no mark on your credit file. Simon Kendrick compares 80+ lenders on one application, and for eligible applicants funding may be available within 24 to 48 hours. Talk to us about matching a facility to your hire book and fleet plans, and check with your accountant on any tax questions before you decide.