Funding Loop, an Australia-based business finance marketplace, and Choco Up, a Singapore-based financing provider, announced Thursday the launch of Funding Loop Pay, an invoice financing product designed to help Australian small and medium-sized enterprises (SMEs) manage cash flow when facing long invoice cycles or delayed payments.
The duo said in a statement that cash flow remains one of the biggest constraints for small businesses, particularly when growth requires upfront investment.
Recent research found that nearly 80 percent of Australian small and medium businesses experienced cash flow impacts over the past 12 months, highlighting the need for practical payment flexibility at the point of purchase.
Separately, 41 percent of Australian small businesses reported that payments are more than 14 days late on average, with 17 percent stating that payments are 30 days late.
Funding Loop Pay allows eligible business customers to split approved invoices into 26 equal weekly repayments over six months, with a fixed 8 percent plan fee added to the invoice amount.
Supported invoice sizes range from A$1,000 ($703) to A$20,000 ($14,053), subject to approval.
For merchants and service providers, Funding Loop Pay removes payment friction at the point of sale.
Merchants receive the full invoice amount upfront once the customer is approved and activates their plan, with no setup costs, subscription fees, or merchant fees.
Funding Loop also manages merchant onboarding and setup, while the underlying technology, powered by Choco Up, handles end‑to‑end repayments and assesses customer credit risk.
The result is immediate revenue and predictable cash flow for merchants, and greater purchasing power for business customers – helping SMEs grow without being constrained by short-term cash flow.
Approvals are typically reviewed within 30 minutes of completing the application, and customers can repay early at any time without penalty.
Since its expansion to Australia in 2024, Choco Up has supported over 100 businesses in Australia to date, deploying over A$30 million ($21.08 million) in growth capital locally.
Funding Loop Pay has been adopted by a growing group of Australian merchants across tech consulting, medical device supply, and kitchen equipment distribution, helping SMEs manage business to business (B2B) payments more predictably.
“An SME can be ready to lock in a supplier order, commit to a service provider, or invest in the tools that keep operations running, but payment timing is often what delays the decision,
“Having a more workable way to manage that spend helps businesses act sooner without putting unnecessary pressure on cash flow. For merchants, it creates a win-win outcome because customers can commit with more confidence, conversations move faster, and more quotes convert into real business,” said Percy Hung, Founder and Chief Executive Officer of Choco Up.
Stana Vo, Founder of Funding Loop, said Funding Loop Pay is built for Australian businesses that need more flexibility when paying for essential B2B purchases.
“By partnering with Choco Up, we’re enabling businesses to spread payments in a simple 26-week structure, while giving merchants immediate revenue and predictable cash flow, so both sides can grow without being constrained by short-term cash flow,” he added.
Funding Loop Pay is available to Australian businesses with an Australian Business Number, subject to standard eligibility criteria such as being established for at least 12 months and generating a minimum monthly turnover of A$10,000 ($7,026).