Invoice finance is a financing solution that allows businesses to access cash tied up in unpaid invoices. Rather than waiting for customers to pay their invoices, businesses can sell their invoices to a third-party lender, known as a factoring company or invoice financier.

The lender advances a percentage of the invoice value, typically up to 90%, and then collects payment from the customer directly. Once the invoice is paid in full, the lender deducts their fees and returns the remaining amount to the business. This type of financing can be useful for businesses with long payment terms, as it provides access to cash to cover expenses and helps to improve cash flow.