Use Cases

Introduction

Invoices are the formal records of commercial activity: they document what was sold, when, in what quantity, and at what price, and they establish payment terms that are legally binding. Invoices also sit at the heart of day-to-day cash flow management, tracking accounts receivable (what customers owe) and accounts payable (what a business owes its suppliers).

In practice, invoices are used to accelerate collections, reconcile sales, and resolve disputes. They can be issued in different forms depending on the transaction (standard, commercial, proforma, recurring, or VAT), but all require core details like a unique invoice number, dates, pricing, taxes, and payment terms.

Traditional invoice finance lets businesses access working capital before customers pay. A lender advances a percentage of an invoice (often 80–90%), collects payment later, and returns the balance minus fees. This is commonly structured as invoice factoring (lender collects) or invoice discounting (business collects).