Invoice Financing¶
| Product ID | PRD-013 |
| Launch tier | 3 |
| Jurisdiction | NZ + AU |
| Status | Planned |
| Regulations | CCCFA 2003 · NCC Act 2009 (NCCP) · AML/CFT Act 2009 · AML/CTF Act 2006 · Privacy Act 2020 · Privacy Act 1988 |
Invoice financing advances working capital against the value of outstanding trade receivables. The facility provides liquidity to businesses without requiring fixed assets as security — the receivables pool itself forms the collateral. Eligible invoices are validated at each drawdown and the exposure recalculates dynamically as receivables age and collections arrive.
Key terms¶
| Term | Value |
|---|---|
| Facility type | Invoice financing — advance against eligible receivables |
| Advance rate | Per credit assessment (typically 70–90% of eligible face value) |
| Eligible receivables | Per facility deed: invoices < 90 days, approved debtors, concentration cap per debtor |
| Interest rate | Variable; charged daily on outstanding advance balance |
| Facility fee | Per fee schedule |
| Maximum debtor concentration | Per facility deed (automated enforcement at drawdown via MOD-028) |
| Repayment | On collection of each receivable, or at maximum receivable age |
| Statement frequency | Monthly |
System capabilities¶
Drawdown eligibility is checked in real time at every drawdown request — MOD-028 applies the concentration and age check automatically; ineligible receivables are blocked immediately without manual officer review. Receivable aging is tracked automatically with no manual expiry management. Excess concentration blocks drawdown in real time. ECL is modelled on receivable quality and debtor mix (MOD-031).
Eligibility¶
The applicant must be a legal entity with an established trading history. Credit assessment per CRE-001 is required before a facility limit is established. MOD-027 assesses affordability against the receivable book; MOD-028 evaluates debtor quality and concentration. The receivable book must meet the eligibility criteria set out in the facility deed. KYC must be current for the applicant entity and all beneficial owners per AML-003.
Account / facility opening¶
- Customer submits a facility application with a receivables schedule and debtor list.
- MOD-027 and MOD-028 assess the receivable book quality, debtor mix, and concentration.
- On credit approval, the facility deed is executed setting advance rate, eligible receivable criteria, and debtor concentration limits.
- MOD-049 captures consent; MOD-050 delivers pre-contractual disclosures.
- MOD-007 activates the facility. Drawdowns are available immediately against eligible receivables.
Fees¶
| Fee type | Amount |
|---|---|
| Facility establishment fee | Per fee schedule |
| Annual facility fee | Per fee schedule |
| Drawdown fee (per drawdown) | Per fee schedule |
| Early facility cancellation fee | Per fee schedule |
Fees are applied by MOD-110 at the relevant trigger event.
Interest / charges¶
Interest accrues daily on the outstanding advance balance at the variable rate set in the facility deed. Interest is debited monthly from the customer's nominated settlement account. The monthly statement shows the daily interest accrual and the total interest charged in the period.
Statements¶
MOD-113 generates a monthly statement showing: advance balance, receivables on file, collections received, interest charged, fees charged, and available headroom. Statements are delivered to the customer's in-app document vault and retained for seven years.
Closing / exit terms¶
The facility may be reduced or cancelled once all outstanding advances are repaid and no eligible receivables remain on file. Customer-initiated cancellation: the customer repays the outstanding advance balance; the bank releases its security interest over the receivables pool. An early cancellation fee may apply per the fee schedule. Security interest deregistration from the PPSA register is completed by the bank within the statutory timeframe following full repayment.
Regulatory¶
New Zealand: Credit Contracts and Consumer Finance Act 2003 (CCCFA) where applicable. Personal Property Securities Act 1999 (PPSA) — security interest registration over the receivables pool. AML/CFT Act 2009 per AML-003. Privacy Act 2020 per PRI-001.
Australia: National Consumer Credit Protection Act 2009 (NCCP) where applicable. Personal Property Securities Act 2009 — security interest registration. AML/CTF Act 2006 per AML-003. Privacy Act 1988 per PRI-001.
Governing policies¶
- CRE-001 — Credit Risk Management Policy
- CRE-002 — Responsible Lending Policy
- CON-004 — Product Disclosure & Sales Practice Policy
- CON-005 — Fee & Pricing Transparency Policy
- CON-006 — Product suitability and governance
- AML-003 — Know Your Customer (KYC) & Identity Verification Policy
- PRI-001 — Privacy Policy
Implementation modules¶
| Module | Name | Status |
|---|---|---|
| MOD-001 | Double-entry posting engine | Deployed |
| MOD-002 | Immutable transaction log | Deployed |
| MOD-003 | Real-time balance engine | Deployed |
| MOD-007 | Account state machine | Deployed |
| MOD-020 | Pre-payment validation suite | Deployed |
| MOD-027 | Affordability calculator | Deployed |
| MOD-028 | Credit score & risk rating | Deployed |
| MOD-030 | Stage allocation model | Deployed |
| MOD-031 | ECL calculation & GL posting | Deployed |
| MOD-044 | JWT role-based access control | Deployed |
| MOD-049 | Open banking consent management | Deployed |
| MOD-050 | Disclosure enforcement module | Deployed |
| MOD-065 | Credit servicing & collections | Deployed |
| MOD-068 | Authentication & session management | Deployed |
| MOD-105 | Product eligibility engine | Not started |
| MOD-110 | Fee engine | Deployed |
| MOD-112 | Amortisation schedule engine | Deployed |
| MOD-113 | Statement generation | Not started |
Compiled 2026-05-22 from source/entities/products/PRD-013.yaml