Invoice finance allows businesses to borrow against the value of their outstanding invoices, releasing cash before customers pay. The two main products are invoice factoring, where the lender manages the sales ledger and collects payment directly, and invoice discounting, where the business retains control of collections. Costs include a service fee and a discount charge based on the amount advanced. Invoice finance is regulated by the Financial Conduct Authority when provided by FCA-authorised lenders.
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