Invoice financing gives small businesses the needed financial assistance to manage their cash flow. It is a type of short-term funding, where a business sells its outstanding accounts receivable invoices at a discounted rate to an invoice financing firm. The financing company buys the invoices and then collects payment from the customer. It provides much needed liquidity for small businesses who may otherwise struggle to pay their expenses, purchase new inventory, or even make payroll. By financing their invoices, small businesses are able to maintain their current operations and grow as they project future revenue. It’s a win-win for both the invoice financing firm and the small business since it ensures stable income for both parties.