As a small business owner you may have heard the following terms when it comes to invoice financing:
- factoring
- Invoice discounting
- Invoice funding
- Invoice purchasing
- Invoice Funding
The basics of a invoice finance transaction involves three parties.
- A business that sells goods or services to another company on open account like 30 day terms.
- The company that buys the goods or services from #1.
- An Invoice finance, or factoring company.