Invoice finance is your funding solution that gives your small business an advance of capital for your current unpaid invoices and ongoing funding against invoices raised for services completed or delivery of goods. At ABL, we refer to this type of funding as a Revolving Line of Credit (RLOC) without the restrictions of your industry standard invoice finance facility.
The principle behind the RLOC is that it alleviates the financial pressure of waiting for customers to pay your invoices. The RLOC serves to accelerate your cash flow by giving you money today for the items you will sell or the receivables you will collect tomorrow. They, therefore, work especially well for small or mid-size businesses that are experiencing rapid growth.
Also known as:
Receivables finance, accounts receivable finance, invoice factoring and invoice discounting.