Declined by Lendmigo? What happens when your invoices can't be funded

Invoice finance sounds like the perfect answer to slow payers. You’ve done the work, you’ve sent the invoice, so borrow against it. But it only works if the funder is happy with the invoices, and especially with the customers behind them. If Lendmigo declined your application, or it’s been sitting with a broker for a while, that’s the first place to look.

Lendmigo in brief

Lendmigo is a Sydney-based lender to small and medium businesses that launched in 2024 to 2025. It offers invoice finance and credit lines, and it works closely with brokers, so many people deal with it through an intermediary.

Why invoice finance gets declined

These reasons apply to invoice finance generally. They aren’t a claim about Lendmigo’s assessment of your file.

Your customers are being assessed too. With invoice finance, repayment comes from your debtors. If they’re small, new or have their own credit issues, the funder carries that risk.

Too much in one basket. If one client makes up most of your receivables, a single slow payment or dispute could wipe out the security. Many funders limit how much they’ll advance against one debtor.

The wrong kind of invoice. Progress claims, retentions, invoices for work not yet finished, and invoices to related companies or individuals can be harder to fund.

Disputes and part-payments. A history of short-paid invoices or credit notes makes the book less predictable.

Contra arrangements. If you also buy from a customer and the two accounts are offset, the invoice may not be worth its face value to a funder.

Security already registered. If another lender already holds a general security interest over the business, there can be a conflict over the receivables. A PPSR search shows what’s registered.

The next 24 hours

• Ask what was wrong with the book. Was it a particular debtor, concentration, or the invoice type?
• Chase the big one. A polite call to your slowest large client asking for a payment date is worth more than another application.
• Work out the gap. How much do you need, and until when? That’s your loan and your exit.
• Check with your broker. If you came through one, ask if anything else is in progress so you don’t double up on enquiries.
• Check your property. Equity in a home or commercial property opens a route that doesn’t involve your invoices at all.

Bridging slow payers with property instead

Company Cash lends $20,000 to $50,000 against residential or commercial property, up to 80% of residential value or 70% of commercial. There’s no valuation, and we don’t need bank statements, financials, tax returns or a debtors ledger. Bad credit, defaults and ATO debt are considered.

Nothing is assigned. Your customers aren’t contacted, notified or assessed. The loan sits on the property, covers wages and suppliers while the big client takes its time, and gets repaid when the money lands. Up to three months of interest can be prepaid, then repayments go weekly. Short, quick, done. Our page on short-term business loans of one to three months explains how that kind of loan runs.

Example: a Sydney commercial cleaning contractor

A commercial cleaning company in Western Sydney wins a contract with a large property manager on 60-day terms. Most of its receivables now sit with that one client, and a smaller client regularly short-pays. An invoice finance application doesn’t get over the line because of the concentration and the disputes.

The director owns an investment unit in Parramatta with good equity. A $40,000 loan against it covers two months of wages and supplies while the first invoices age, then the client’s payments repay it. The debtor book never comes into the assessment. This is an example, not a real customer.

When invoice finance still fits

If you invoice lots of creditworthy customers on an ongoing basis, invoice finance can be a good long-term tool, and a slightly different book may get a different answer in a few months. Our explainer on invoice finance covers the mechanics. A short property loan is for the specific gap you’re facing now.

Bridge the gap now

If Lendmigo said no and the wages are still due, give us the outline. It’s about a minute’s work, and asking won’t dent your credit score: we don’t check it until you choose to apply. We lend directly, so your details stay with us and your phone won’t be flooded. A real person reads it and calls you back. Be accurate about the property and what’s owed so we can line up the right answer the first time. See if you qualify →