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selling invoices to improve cash flow is becoming a very popular business practice but keep in mind but there are different types of companies that you can sell these invoices to invoice factoring in invoice financing are often used interchangeably but theyre not the same thing so today were going to explore just what makes them different first lets take a look at what these two things have in common so if you have outstanding receivables and youre facing cash flow problems whether its an invoice financing company or an invoice factoring company you can sell these invoices to them for cash up front invoice financing and invoice factoring actually share a lot of advantages for example you wont have to go through a credit check because its more important how likely your customers are to pay back also you wont have to put up any collateral because the invoices serve as collateral themselves we also tend to receive the cash pretty fast usually within a couple days you no longer hav