If you’re struggling to obtain a loan, invoice finance offers an alternative way of accessing funds by unlocking the cash tied up in your outstanding invoices.
It can be a good solution if you have long payment terms, or are looking to grow your business, and can be set up in two main ways: invoice factoring and invoice discounting.
Invoice discounting works like a traditional secured loan, while with invoice factoring, an external factoring company “buys” your invoices and pays your company between 75-90% of the value before collecting the total from your customer.