Invoice purchasing vs invoice financing

Stable cash flow is crucial for growth. But long payment times mean that many companies are stuck waiting for customer payments. When liquidity needs to be strengthened, the choice is sometimes between invoice purchasing and invoice financing – and the difference is greater than many people think.

🚀 Invoice purchase – fast liquidity without risk

When purchasing on invoice, you sell the invoice and receive the money immediately. The financial company takes over the risk and handling.

Advantages:
• Up to 100 % paid out instantly
• The finance company takes the entire credit and interest rate risk
• Minimal administration
• No recourse – does not affect the balance sheet

Invoice purchasing is a fast and safe solution for companies that want to grow without taking out new loans.

🏦 Invoice financing – more administration and greater risk

With invoice financing, you use the invoice as collateral for a loan. This means more work and greater responsibility.

Disadvantages:
• Only 70–80 % are paid out directly
• You remain with the entire risk until the customer pays
• The invoice remains on your balance sheet
• You are responsible for mailings, reminders and claims management
• More administration and credit checks
• Can work for larger companies with strong margins, but is often more expensive and time-consuming than many expect

🧭 Conclusion

Invoice purchases provide:
• Fast liquidity
• Less administration
• Lower risk
• Stronger cash flow

Invoice financing means:
• Lower payout
• More work
• Greater risk
• Mainly suitable for larger companies

👉 For most small and medium-sized businesses, invoice purchasing is the most efficient and cost-effective option.

At Finans Partner, we offer tailored solutions for invoice purchasing with a focus on speed, transparency and personal service.