What Is Invoice Financing?
Borrowing against unpaid invoices to access cash before customers pay.
Detailed Explanation
Unlike factoring, you retain ownership of the receivables and handle collections yourself. The lender advances a percentage and charges a fee until repayment.
Example
A growing agency uses invoice financing to bridge a $50k gap while waiting on Net 60 payments.
Why It Matters
Provides working capital without giving up control of customer relationships.
Related Resources
Related Business Terms Terms
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