BUSINESS FINANCE GLOSSARY
Invoice Finance
Invoice Financing
Borrowing supported by outstanding customer invoices.
What does Invoice Finance mean?
Borrowing supported by outstanding customer invoices. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
Invoice Finance in context
A wholesaler obtains an advance against eligible receivables while retaining collection responsibility.
Why it matters in financing
Invoice Finance can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related business finance terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.