How it works
Invoice financing can make cash available against eligible unpaid business invoices. The details matter: some arrangements let you borrow against invoices while you continue to collect, while factoring involves selling receivables and may change who contacts your customer.
Picture this
A commercial cleaning company has completed a job but the customer pays on extended terms. Instead of waiting for that payment to cover upcoming payroll, the business explores funding tied to the invoice.
Example only. The right product depends on your business and the terms offered.
When it may be worth exploring
- Businesses that invoice other businesses for completed work
- Reliable customers with valid, collectible invoices
- A short cash gap caused by payment timing rather than ongoing losses
What to compare in an offer
- How much cash is advanced initially and when the remainder is paid
- All fees and how they change if the customer pays late
- Who collects from the customer and whether the customer is notified
- What happens if an invoice is disputed or remains unpaid
Common questions
Is invoice financing the same as factoring?
Not always. In a financing arrangement, you may keep ownership and collection responsibility. With factoring, invoices are typically sold to the factor. Ask which structure is offered.
Will my customer know?
That depends on the agreement. Some arrangements require notice or direct payment to the provider, so ask before signing.
Can I finance any invoice?
Providers usually review the customer, invoice validity, age, and payment history. Not every invoice will qualify.
This page is general information, not an offer or approval. Products, eligibility, rates, fees, and terms vary by lender and applicant. Altora Capital Group is an independent referral partner of ROK Financial.