Invoice financing gives businesses an advance payment using unpaid invoices as collateral. When a customer pays an invoice, you repay the financing provider the amount advanced plus interest and fees.

The optimal alternative financing method depends on your business model, cash flow patterns and growth strategy.

Invoice factoring is a form of invoice financing where you sell unpaid invoices to a third party in exchange for cash up front, rather than waiting for your customers to pay. It’s a common practice ...