How does invoice financing actually work?
A business raises invoices as they normally would and the invoice details are passed on to the invoice finance provider, who will then release a percentage of the value of the unpaid invoice upfront.
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Depending on the invoice finance agreement entered, the business or the invoice finance provider will chase payment for the unpaid invoices. Once the invoice has been paid, the invoice finance provider will release the remaining balance minus a small fee for the service.