There are many challenges that business owners often face. One of them is insufficient cash flow due to pending invoices. Most invoices allow buyers to settle invoices within a 30 day period while others allow up to 90 days for settling invoices. To resolve this issue, most banks nowadays offer invoice financing for small business. There are also firms that offer invoice factoring and discounting. Whatever the case, it is crucial for small businesses to compare the terms and conditions offered by different invoice financiers.

Invoice financing is the process of taking out a loan against the value of pending invoices. The financier then charges interest on the loan. To get the best financing, be sure to compare the interest rates quoted by the shortlisted firms. The most affordable invoice financier should be given special consideration. The ideal firm should also finance 100% of the value of invoices that have not been paid.