Invoice Finance

Glossary

Banking

Invoice Finance

Invoice finance is a form of finance where companies generate regular cash flow by selling unpaid invoices to a bank or specialist provider for a fee, usually in the form of a discount to face value. This type of financing can take several forms including invoice discounting and factoring. While under some arrangements the company that has on-sold invoices will continue with the collection process, the invoice buyer will typically take responsibility for collecting payment on the invoices.

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