You may need a short-term cash injection if you’re experiencing cash flow problems. Invoice financing is a way to borrow money based on the funds customers owe your business. You’ll receive a portion of the value of your accounts receivable in the form of a line of credit or loan. Then, when your customer pays the invoice, you repay the lender.
Invoice financing is excellent if you need immediate cash to help recover a funding gap driven by slow-paying customers. Additionally, invoice financing is often a feasible alternative route for funding, especially for small businesses that have had trouble securing more traditional financing.