Quick answer
Receivables are amounts owed to your business by customers for goods or services already delivered but not yet paid for. They appear on the balance sheet as a current asset and are often called accounts receivable or debtors. Lenders can advance money against them through invoice or debtor finance, but they only count invoices that are recent, undisputed and owed by creditworthy customers.
Key points
- Money owed to you for work done or goods supplied, recorded as a current asset
- Trade receivables can be financed; related-party and disputed amounts usually can't
- Lenders exclude old invoices and cap how much one customer can make up
- Large businesses must publicly report how quickly they pay small suppliers
Every unpaid invoice you’ve sent is a small loan from your business to your customer. Add them all up and you have your receivables: money that’s yours by right, already earned, but sitting in someone else’s bank account. For many trade, wholesale and service businesses it’s the largest asset on the balance sheet.
What counts as a receivable
Accountants split them into two groups, and lenders care about the difference.
- Trade receivables: invoices to customers for goods or services delivered. These are what accounts receivable usually refers to, and what invoice financiers lend against.
- Other receivables: a GST refund due from the ATO, a deposit or bond held by a landlord, insurance claims, or a loan from the company to a director or related entity.
That last item gets a sceptical look. A large related-party loan sitting in receivables may never turn into cash for the business, so lenders generally ignore it when sizing a facility, and may ask questions about it.
How lenders put a value on receivables
A receivables ledger is never worth its face value to a lender. They trim it in a predictable order.
- Age. Invoices beyond 90 days, sometimes 60, are typically excluded. Our page on aged receivables explains the columns.
- Disputes and credits. Anything contested or subject to a credit note comes out.
- Related parties. Sales to companies you or your family control are usually ineligible.
- Concentration. If one customer makes up too much of the ledger, the excess above the concentration limit is excluded.
- Advance rate. The lender then advances a percentage of what remains, holding the rest back until the customer pays.
A worked example: a Newcastle food wholesaler
The business has $480k in receivables at month end.
| Adjustment | Amount |
|---|---|
| Total receivables | $480k |
| Less invoices over 90 days | –$60k |
| Less one supermarket customer above the concentration limit | –$90k |
| Less a loan to a related company recorded as a receivable | –$15k |
| Eligible receivables | $315k |
| Advance at 80% of eligible | $252k available |
The owner thought of the ledger as $480k of borrowing power. In practice about half of that is available, and the quickest way to lift it is to chase the 90-day invoices and spread sales across more customers. Run your own figures through the invoice finance calculator, or ask us what your ledger could fund.
Why receivables are growing for small businesses
Slow payment by big customers inflates receivables and squeezes cash. Under the Payment Times Reporting Scheme, businesses with more than $100 million in annual income report how fast they pay small suppliers. The regulator’s February 2026 update put a number on the drift: clearing 95% of small-supplier invoices was taking big reporting entities 64 days on average, a six-day blowout on the prior cycle’s 58. If a major customer is on that register, you can check its record before agreeing to terms.
Receivables as loan security
Beyond invoice finance, receivables often support a general business loan. A general security agreement usually covers them, and lenders register their interest on the PPSR, where trade receivables fit the PPSA definition of an “account”. Where an existing lender already holds a GSA, any new invoice financier will want it to sign a deed agreeing who ranks first over the debtors. Structured products such as debtor finance and invoice finance are built specifically around this asset.
Related terms
Debtor, debtor days, working capital cycle, factoring and write-off.
Owed money and waiting for it?
If your customers are slow but reliable, your receivables could be paying the bills now rather than in two months. Tell us about your ledger through our short form; it’s roughly a sixty-second job, and your credit score is left alone when you ask. We don’t share your details around a crowd of financiers. A member of our team weighs up who owes you, on what terms and how wide the cash gap is, then calls you. Fill in your monthly sales and debtor balance carefully so we can recommend the right facility straight away.
Frequently asked questions
Are receivables the same as accounts receivable?
Mostly. Accounts receivable usually means trade receivables, money owed by customers. Receivables can be broader and include other amounts due to the business, such as a GST refund, a bond, or a loan to a director or related company.
Are receivables an asset?
Yes. They're a current asset because they're expected to turn into cash within twelve months. But they're only worth what you actually collect, so accountants write off or provide for debts that are unlikely to be paid.
Can I borrow against my receivables?
Yes. Invoice finance, debtor finance and invoice factoring all advance a share of eligible receivables, usually within a day or two of invoicing. The facility grows as your sales grow. Lenders typically register a security interest on the PPSR.
Why won't a lender count all my receivables?
Lenders exclude invoices that are old, disputed, owed by related parties, owed by overseas or government customers on some facilities, or that push one customer above a concentration limit. What's left is the eligible ledger they'll lend against.
How do I find out how fast a big customer pays?
Large businesses with more than $100 million in total annual income report their payment times to small businesses every six months under the Payment Times Reporting Scheme, and the reports are published on a public register.