---
title: What is invoice financing?
description: Invoice financingis a type of funding that allows businesses to borrow money against their outstanding customer invoices. In simple terms, it means you get a portion of the invoice amount upfront from a lender, and in return, you pay a…
url: "https://yazodo.com/help/business-loan/what-is-invoice-financing/"
updated: "2025-12-03"
category: Business Loan
tags:
  - Business Loan
  - Types of Business Loans
---

# What is invoice financing?

Invoice financingis a type of funding that allows businesses to borrow money against their outstanding customer invoices. In simple terms, it means you get a portion of the invoice amount upfront from a lender, and in return, you pay a small fee. This helps maintain steady cash flow, pay employees and suppliers on time, and reinvest in your business operations — without waiting for customers to settle their dues.