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INVOICE FINANCE
Invoice finance is a funding solution that allows businesses to unlock cash tied up in unpaid invoices, improving cash flow and enabling more effective management of working capital.
This type of finance provides businesses with access to a percentage of the invoice value (usually up to 90%) immediately after the invoices are issued, rather than waiting for customer payments.
There are two main types of invoice finance:
- Factoring, where the lender manages the sales ledger and collects payments directly from customers
- Invoice discounting, where the business retains control over collections while funds are advanced against unpaid invoices
Invoice finance is particularly beneficial for businesses facing long payment terms or experiencing seasonal cash flow fluctuations. It provides the liquidity needed to cover day-to-day expenses, invest in growth, or seize new opportunities.