Butn: selective invoice finance and pay-later funding for B2B businesses

Picture a food wholesaler that has just delivered $20,000 of stock to a restaurant group on 30-day terms. The goods are gone, the staff and the truck lease still need paying this week, and the money won’t arrive for a month. Butn exists to close exactly that window between delivering and being paid.

Butn isn’t a lender in the classic sense. It doesn’t hand over a lump sum to be repaid over years. Instead it funds individual invoices and bills, one transaction at a time. Everything below was checked on Butn’s website as at October 2026; confirm the details with Butn before relying on them.

What Butn offers

Butn describes itself as an embedded finance platform and funder, and says it has processed more than $2.5 billion of funding since 2015. Its website lists three products:

Product	What it does	Who it helps
Butn X	Advances up to 85% of an unpaid invoice’s value, less a funding fee	Businesses waiting on customers to pay
Butn Pay	Pays a supplier’s bill now and gives you a longer period to repay Butn	Businesses that need stock or services before their own cash comes in
Butn Terms	Lets you offer customers 7 to 90 day terms while Butn pays you upfront, vets their credit and handles collections	Suppliers that want to sell on credit without carrying the risk

There’s also a consultation route for tailored arrangements. Butn X is the one most owners come to Butn for, and it works as selective invoice finance: you pick which invoices to fund, rather than handing over your whole debtor ledger. Our explainer on invoice finance covers how the selective and whole-ledger versions differ.

Who qualifies

Butn’s FAQs set out a fairly open door on the business side and a tighter one on the invoice side.

The business: any entity with an ABN or ACN. Sole traders register as the sole director, trusts upload a copy of the trust deed, and each director needs a driver’s licence. Butn doesn’t publish a minimum trading period or turnover.

The invoice: this is where the real test sits. Invoices must be issued to another business with an active ABN, and they must not be past their due date. That rules out consumer invoices and anything you’re already chasing.

The limit: each client receives a funding limit, which Butn calls a guide. It weighs your credit and bank assessment, time in business, and your trading history with the customer you’re invoicing. There’s no cap on the number of invoices, only on the total outstanding. Requests above your limit can still be assessed, sometimes with supporting documents, and an excess fee may apply above $75,000.

Because the strength of the paying customer matters so much, a young business that invoices a large, reliable company can sometimes get further here than with a lender that looks only at its own bank statements. Our page on business loans with an ABN under 12 months sets out other options for newer operators.

How the costs work

Butn doesn’t publish its pricing as a rate, and neither will we. The structure, as at October 2026, is:

• a one-off establishment fee, taken from your first funded transaction;
• a flat fee per funded invoice, which rises with the number of days between funding and the invoice’s due date, and is shown before you confirm;
• an extension fee charged daily if an invoice goes past due; and
• no monthly fees and no minimum usage.

Butn says its funding fees attract no GST because they’re input-taxed supplies.

The practical point: a 14-day invoice costs less to fund than a 60-day one, and a customer who pays late costs you extra every day. Before relying on Butn for a particular customer, look at how promptly they really pay. Our glossary entry on debtor days shows how to measure that, and the invoice finance calculator helps you turn a fee into dollars per invoice.

Working out whether invoice funding or a loan is the better fit for your cash cycle? Send us a quick outline and one of our team will talk you through it, without a credit check.

A worked example

This is an illustration only, using round numbers.

A landscaping supplier issues a $20,000 invoice to a builder with an active ABN, due in 30 days. With Butn X it could receive up to $17,000 (85%), minus Butn’s flat fee for a 30-day invoice. If the request goes in before 4pm Melbourne time on a weekday, the money is sent the same day over the New Payments Platform, usually landing within seconds of approval.

When the builder pays, the transaction is settled. If the builder pays ten days late, extension fees apply for each of those days, which is why choosing reliable customers’ invoices matters.

Where Butn fits, and where it doesn’t

Butn tends to suit:

• B2B businesses such as wholesalers, distributors, trades suppliers, freight operators and agencies;
• owners who want to fund some invoices, not all, and only when they need to; and
• suppliers keen to offer credit terms without becoming a debt collector, through Butn Terms.

It’s a weaker fit when:

• most of your revenue comes from consumers rather than businesses;
• your invoices are already overdue; or
• you need a lump sum for something like a fit-out, equipment or a tax bill. A business term loan or equipment finance is a better shape for those.

If your bank offers a business overdraft at a sensible limit, compare it seriously; our invoice finance vs overdraft comparison walks through the trade-offs. Banks are often cheaper when you fit.

Questions to ask Butn

1. What is the establishment fee in dollars, and what would the flat fee be on my typical invoice size and terms?
2. What funding limit am I likely to get, and how can it grow?
3. If my customer pays late, what do I pay for each day it runs over, and what happens if they don’t pay at all?
4. Does Butn notify my customer or take any security over my business?
5. Is Butn available inside the accounting or industry software I already use?

If Butn isn’t the answer

• Consumer invoices or overdue debts: a working capital loan from an online lender may suit better.
• You want your whole ledger funded: a full debtor finance facility from a lender like Earlypay or ScotPac can provide a revolving limit.
• You want another pay-per-invoice option: FundTap offers on-demand funding for selected invoices.
• You need to pay overseas suppliers: see trade finance.

Cash stuck in invoices? Let’s look at the whole picture

Invoice funding is a clever fix when the problem is timing. But sometimes the slow-paying customer is only part of the story, and the better fix is a revolving facility, a loan against property, or some combination.

Our form is a one-minute job, and sending it doesn’t put an enquiry on your credit report. We hold onto your details ourselves, never firing them off to dozens of financiers, and someone from our team reviews what you’ve told us before giving you a call. The more accurate your figures on debtors and turnover, the better the first suggestion we can make.

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