What is Invoice Finance?

An invoice is a document that evidences the sale of goods and services, including the amount paid for them. The first use of an invoice was in medieval times when receipts were used instead. As time passed, invoices took over their function, and are now a legal requirement for all businesses to have in place. If you are a small-business owner, then you may have run into Invoice Finance UK at some point. 

Invoice finance is a financing model that companies use to raise money from lenders by selling the company’s invoices. It is a process by which your business can borrow against the amount owed to it by customers, suppliers, or any other entity that has an outstanding obligation. The interest rate charged on this debt is generally much lower than on loans secured by assets. The most obvious benefit of invoice financing is that it allows you to raise funds with no upfront costs.

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