product
Invoice Financing
Invoice financing is a short-term loan using unpaid customer invoices as collateral, you retain the invoices and collect them yourself.
Last updated Reviewed by ICG Funding
Definition
What it means.
Invoice financing (sometimes called accounts receivable financing) advances 70–90% of the face value of eligible invoices. When your customer pays, you repay the advance plus a fee, and keep the remainder.
Invoice financing is distinct from invoice factoring: in financing, the lender has a lien on the invoices but does not take ownership and does not collect from your customer. That makes it less disruptive to customer relationships but usually more expensive per dollar of capital.
Now what?
Get an offer that accounts for invoice financing.
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