Invoice Financing Costs refer to the additional costs associated with using a third-party to finance invoices. Companies typically use invoice financing when they need to receive payment quickly and cannot wait for their customers to pay. By using a third-party to finance their invoices, companies can access capital quickly and at competitive rates — without taking on unmanageable debt or giving away equity. Invoice Financing Costs generally include fees like interest rates, transaction fees, processing fees, and other administrative charges. It’s important to understand these costs before entering into any contract — so that you can ensure that it makes financial sense for your company.