Invoice Financing Is A General Term Used For Asset Based Lending Products That Allow Companies To Finance Slow Paying Accounts Receivable. There Are Two Ways To Finance Invoices .The First Way Is Through A Sale . Invoices Can Be Sold To A Factoring Company In Exchange For An Immediate Payment. The Overall Apr , Typically 15-35% Is High Compared To That Of Banks Or On Line Term Lenders. But It's A Good Short-Term Solution , When Most Of Short Term Assets Are Tied To Accounts Receivable That Lets You Avoid The Lengthy Bank Loan Application. Its Also Much Better Compared To Expensive Merchant Cash Advances. Your Credit Score Doesn't Matter As Much . Your Clients Credit Scores Will Also Be Taken Into Consideration . Therefore Its A Good Solution If U Have Receivables But Haven't Built Up Your Credit Enough To Get A Credit Line From A Bank.
