Installers usually ask this when cash is tight: the crew has been paid, the panels are on the roof, and the STC money is still weeks away. There are four ways people try to bridge it. Each costs something.
The options
Advance on STCs. A trader pays part of the expected value before the claim clears, then settles the balance later. It is a loan secured on certificates you have not yet delivered, so expect a lower effective rate or a fee.
Prepayment. Similar, but paid before the job is claimed, sometimes against a forecast of volume. Terms can tie you to one trader. See trader exclusivity.
STC factoring. You sell the receivable, the money owed for your claims, to a financier at a discount. The financier collects from the trader.
Invoice finance. A broader facility against your customer invoices, which may include the STC portion.
What they cost
Pricing varies and you should insist on seeing it as an annualised rate, not a monthly percentage. Short-dated receivables make finance look cheap per transaction and expensive per year. A facility with a minimum term, monthly fees or personal guarantees can turn out dearer than the delay it is solving. Never quote a facility on the headline alone; add every fee.
Compare it with faster settlement
A trader that pays about a day after sign-off has almost nothing left to finance. A trader that pays in 20 business days leaves nearly a month of every job in limbo. Work out your cost of waiting: interest on your overdraft, supplier discounts you miss, wages you fund from savings. Then compare it with the rate difference between a fast and slow trader. The maths is in 20 days versus 1 day, and installer cash flow covers the wider picture.
GST and paperwork
Advances and factoring can change who issues the invoice and who owes GST. Check how the arrangement interacts with recipient-created tax invoices before you sign; the RCTI, GST and ABN guide is the place to start, then your accountant.
What this means for installers
Ask three questions of any advance: what is the total cost as an annual rate, what happens if the claim is rejected, and does it lock you to one trader. Energy Merchants does not charge fees and settles established partners within 24 hours, so many crews find they do not need a facility. Check the current rate on the pricing page and read how it works for the timeline from claim to cash.