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Invoice financing has become a popular way for small businesses to get the cash they need quickly. But what does invoice financing mean? How does it work? And how do you qualify? Here's everything you need to know about invoice financing: What is invoice financing? Invoice financing is a way to get cash for your business. It’s called “invoice financing” because it involves selling your invoices—the money that’s owed to you by clients—to a third party lender. What's the benefit of this? When you sell an invoice, instead of waiting 30 or 60 days for payment from your customer, you can get paid immediately. That's right: same-day cash! In some cases, you may even be able to receive more than what the invoice is worth (which is called “price enhancement”). This means that if someone buys an invoice with a face value of $1,000 and they think they can collect 2%, they'll offer $2,000 for it (or more).