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What is Invoice Financing and How Does it Work?

March 20, 2024

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Invoice financing, also known as accounts receivable financing, is a financial solution where businesses use their unpaid invoices as collateral to obtain immediate working capital from lenders or financing companies.

Instead of waiting for customers to pay invoices, businesses can access a significant portion of the invoice value upfront, which helps improve cash flow and allows them to meet immediate financial obligations or invest in growth opportunities.

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