The builder paid your invoice financier while winding-up proceedings were underway
The money did not arrive in your normal account
A builder facing winding-up proceedings pays an invoice directly to your invoice financier. Obtain legal advice about the transaction and preserve the finance records. Do not assume the payment is irrelevant to your business because it bypassed the operating account, or that you personally received the full invoice amount. The actual recipient, arrangements and application of funds need to be understood.
Trace the payment through the facility
Imagine a subcontractor previously receiving an advance against the builder's invoice. The financier later receives payment and applies it to the facility, releasing only a remaining amount to the subcontractor. Gather the advance record, debtor remittance, financier statement and bank entries. Show the sequence without collapsing every movement into one receipt in the operating ledger.
Read the finance arrangement
business.gov.au recommends understanding contractual terms and seeking advice where wording is unclear. Give the lawyer the invoice-finance agreement and relevant transaction schedules. Ask what rights, obligations and notification requirements apply. The general guidance does not determine who is liable for a later recovery claim or whether the particular payment is protected from insolvency scrutiny.
Distinguish the amounts involved
Record what the builder paid, what the financier applied, any fees and the amount released to your business. Identify unresolved differences for the accountant. In the subcontractor's example, the gross invoice payment and the later bank deposit represent different stages. Neither figure alone explains the entire transaction or necessarily answers the legal question being asked.
Coordinate enquiries with advice
Tell the lawyer about any communication from a liquidator, financier or other party. Ask how relevant records and responses should be coordinated under the actual arrangements. Do not admit liability, redirect repayments or ask the financier to alter historical allocations to improve the appearance of the file. Preserve the original account treatment and explain any genuine corrections transparently.
Assess the full commercial effect
Ask advisers what the transaction means for the finance balance, any potential claim and future funding. Keep uncertain outcomes separate from confirmed cash in the forecast. The useful response is a clear funds trail supported by the agreement, rather than the assumption that an invoice paid through a financier either removes every risk or makes your business responsible for the whole receipt.