What are the types of invoice finance?

There are two types of invoice financing—invoice factoring and invoice discounting. With invoice factoring, the lender handles payment collection on your invoices, which means they may call your customer to request payment when deadlines come up and pursue any further collection processes. With invoice discounting, you continue to manage the collection of payment from the invoiced customer, and the lender trusts you to chase down the invoice and make sure it’s paid.