Get invoice financing with Butn

Not the business owner? Butn will require signatures from all directors of the business to finalise the account setup. You’ll be asked to provide their contact details and ID as part of the registration process.

1. Open the Loans and finance hub (Banking command centre > Loans and Finance.
   

   

2. Click Open loans and finance hub.

3. If prompted, sign in with your MYOB account details.

4. Click Set up invoice financing.
   

   

5. The first page of the application presents you with an estimate of the invoice financing that may be available to you (subject to eligibility and approval):
   

   

6. At the Bank account step, select the account Butn will use for deposits and repayments. Accounts you've set up bank feeds for will be listed, or you can use another account. If you select another account another, you'll need to provide your banking details to Butn later in the sign up process.
   

   If you need to change this account later, you'll need to contact Butn for help (email customerservice@butn.co or call 1300 333 863).

7. Follow the prompts to complete the application.
   
   If you have any issues applying for your account, contact Butn for help. Butn will let you know once your account is set up, then you'll be able to request financing for your unpaid invoices.

Once you have a Butn account, you can request funding for any unpaid invoices that aren't overdue.

1. Create a new invoice or open an unpaid invoice.

2. Open the Loans and finance hub (Banking command centre > Loans and Finance > Open loans and finance hub > If prompted, sign in with your MYOB account details).

3. Click Fund this invoice with Butn for one of your listed invoices.
   

   

   You'll be directed to the Butn portal to review and confirm your funding request. If it's your first funding request, you'll need to nominate the bank account from which Butn will direct debit any funds and fees owed to them.

4. Follow the prompts and review the details of the funding transaction. You'll see a breakdown of what's being funded and the associated fees. Here's an example:
   

   

5. You'll see the status of your invoice funding requests in the Loans and finance hub.
   

   

Butn will send you an email when the funding has been approved. They will deposit the funds into the same bank account you've specified in AccountRight for your customer invoice payments. How to check your invoice payment details.

Need to change a funded invoice? Contact Butn to update your repayment terms by emailing customerservice@butn.co or calling 1300 333 863 (1 300 33 FUND).

We recommend setting up:

• a liability account—to keep track of the funding you receive from Butn and the repayments you make to them

• an expense account—to keep track of Butn's fees

To set up the liability account:

1. Go to the Accounts command centre and click Accounts List.

2. Click New.

3. Make sure the Detail Account option is selected.

4. For the Account type, choose Other Current Liability.

5. Give the account a number that suits your accounts list. The prefix (the number before the dash) is based on the Account Type and can't be changed.

6. Enter the Account Name as "Butn Financing" (or similar).

7. Click the Details tab and choose the applicable Tax Code for the amounts you'll post to this account. Check with your accounting advisor if unsure. If needed, you'll be able to choose a different tax code when recording your transactions.

8. Choose the applicable Classification for Statement of Cash Flows. Check with your accounting advisor if unsure. Learn more about the Statement of cash flow report.

Click OK. Here's our example account:

To set up the expense account:

1. Go to the Accounts command centre and click Accounts List.

2. Click New.

3. Make sure the Detail Account option is selected.

4. For the Account Type, choose Expense.

5. Give the account a number that suits your accounts list. The prefix (the number before the dash) is based on the Account Type and can't be changed.

6. Enter the Account Name as "Butn Financing Fees" (or similar).

7. Click the Details tab and choose the applicable Tax Code for the amounts you'll post to this account. Check with your accounting advisor if unsure. If needed, you'll be able to choose a different tax code when recording your transactions.

8. Click OK. Here's our example account:
   

   

When Butn deposits funding into your nominated bank account, and when they withdraw your repayment, you'll need to record these transactions in MYOB.

When Butn fund an invoice

Butn will deposit the funding into your nominated bank account, minus their funding fee.

To record the funding transaction in MYOB, you'll need to allocate it to the two accounts you've set up—like this:

• allocate the total funded amount (without fees deducted) to the Butn Financing liability account

• allocate the fees (as a negative value) to the Butn Financing Fees expense account.

Example

• Total invoice value = $10000

• Total fees = $250 (2.5% of invoice value)

• Funding deposited into your bank account = $9750 (10000 - 250).

If you use bank feeds

If you have a bank feed set up on the bank account where Butn deposited your funding, create a new receive money transaction from the Bank Feeds window (click New > Receive Money for the Butn deposit). You can then allocate the amounts as shown in the example transaction below.

If you don't use bank feeds

If you don't use bank feeds on this account, you can record a receive money transaction to allocate these amounts (Banking > Receive Money). Check with your accounting advisor about the applicable tax codes to use.

When Butn withdraw their repayment

Butn will withdraw the amount you owe them from your nominated bank account, and this will include their fees. Based on the example we used above, this means Butn will debit $9750.00 from your bank account. 

Example

• Funding originally deposited into your bank account from Butn = $9750.00

• Total fees = $250.00

• Total amount withdrawn from your bank account by Butn = $10000.00 (9750.00 + 250.00).

If you use bank feeds

If you have a bank feed set up on the bank account where Butn deposited your funding, create a new spend money transaction from the Bank Feeds window (click New > Spend Money for the Butn withdrawal). You can then allocate the amount as shown in the example transaction below.

If you don't use bank feeds

If you don't have a bank feed set up on the account that Butn withdrew their funds from, you can record a spend money transaction to allocate the withdrawal to the Butn Financing liability account. Check with your accounting advisor about the applicable tax codes to use.

*Actual fees may vary. For a full breakdown of fees, please refer to your End User Agreement between you and Butn or contact Butn.

When your funding request is approved, Butn will transfer 100% of the value of the invoice to your account, minus the establishment fee (if applicable) and funding fees. They will then direct debit your account for the full 100% on the repayment date (or as per any special terms you might have negotiated separately with Butn). If applicable, Butn will get in touch to arrange a separate direct debit for any outstanding fees you might have incurred during the funding process.

Example

Melissa wants to fund a $10,000 invoice (including GST), due 60 days from the day she requests funding. Butn approve the request and agree to fund 100% of the invoice value. As it’s her first funding request with Butn, they deposit the funds into her account minus the establishment & funding fees (in this example, the establishment fee is $199 and the funding fee is 4.5% of $10,000 as the invoice is due in 60 days), for a total of $9,551.00. 

Melissa’s customer pays the invoice on time and she records the payment in MYOB. This triggers Butn to schedule a direct debit for the full $10,000, which is debited from the repayment account she nominated when requesting funding. As the funding was repaid on time and she didn’t change the terms during that time, she incurs no additional charges.

During the registration process, Butn require a direct debit agreement be put in place so they can debit the funds from your account on the due repayment date. The repayment date is defined by the fee bracket you fall under (see the FAQ, 'What fees do Butn charge for using this service?', above) allowing you to maximise your financing for the full fee period.

So for example, if your funding fee bracket is for 30 days, you’ll have 30 days from when your invoice is funded to pay the funds back, regardless of when your customer pays you. The same applies for the 60 and 90 day fee brackets.

Example

Melissa wants to fund another $10,000 invoice, due 15 days from the day she requests funding. As the invoice due date is less than 30 days from when she requests funding, she is charged a 2.5% funding fee and her repayment is set for 30 days from when her invoice is funded.

This means if her customer pays her back after the invoice’s due date but before her repayment date, she will not be charged late fees and can continue to use the money Butn has funded until the repayment date.

You absolutely can, so long as the total amount of funds loaned is within the credit limit set by Butn for your account.

For more information about fees, review your Butn End User Agreement or contact Butn by emailing customerservice@butn.co or calling 1300 333 863 (1 300 33 FUND)

Yes! After you edit the invoice or delete the invoice just let Butn know about the changes so they can update your funding agreement, otherwise your repayment amount and terms won't get updated.

Email Butn at customerservice@butn.co or call them on 1300 333 863 (1 300 33 FUND).

To update the bank account you nominated when you set up your Butn account, submit a request through your Butn account by logging into app.butn.co/s/login or contact Butn for help. You can email them at customerservice@butn.co or call 1300 333 863 (1 300 33 FUND).

Contact Butn for help by emailing customerservice@butn.co or calling 1300 333 863 (1 300 33 FUND).

Butn has advised there is no GST on the funding they provide. But as a general rule, you should always speak to your accounting advisor about your business's tax obligations.