Invoice financing is a blanket term used to describe ways in which cash can be raised quickly from a debtor portfolio. While for many companies it is not the preferred choice of financing, since it is usually more costly than longer term loans, it can be an effective way of improving cashflows and can, in some cases, free up staff time from credit control so they can perform other functions within the business.

There are several examples of invoice financing, but the two main types are debt factoring and invoice discounting.