💡 Finance Term of the Week: Invoice Financing

A way to borrow money using your unpaid customer invoices as collateral.

Why it matters:

  • Get quick cash without waiting for clients to pay
  • Improve cash flow and cover short-term expenses
  • Helps you avoid missed opportunities due to late payments

Example:

You issued an invoice of $10 000 to a client, payable in 60 days.
Instead of waiting, you use invoice financing to receive most of that money upfront (e.g., $8 000) from a lender. When the client pays, you settle with the lender.

Have you ever had to wait too long for clients to pay?


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