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.
Is invoice financing right for me?
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.