Invoice financing works as follows: You deliver the goods or services to your customer and issue an invoice with a payment term, such as 30 or 60 days. You apply for invoice financing with a lender and submit your invoice as collateral. The lender will verify the invoice and your customer's creditworthiness. The lender will approve your application and advance you a percentage of the invoice value, usually between 70% to 90%, within 24 hours. The lender will charge you a fee for the service, which can be a flat fee or a percentage of the invoice value. You receive the funding in your bank account or any other mode of payment you prefer.