What is Invoice Financing?

Invoice Finance assists businesses improve cash flow by borrowing money against funds that they are owed from their customers until the balances are paid in full. Businesses pay a percentage of the invoice to the lender as a fee for borrowing the funds.

This type of facility is a great way of building business continuity into the overall business strategy as it mitigates against the negative impact that overdue invoices might otherwise have on cash flow and also allows businesses to cope with longer invoice repayment terms i.e., 60-90 days. 

Types of Invoice Financing