Some alternatives to invoice factoring are:
- Invoice financing: You get an advance on your unpaid invoices from a lender, but you retain control over the collection process and pay back the lender with interest and fees
- Merchant cash advance: You get a lump sum of cash from a lender, based on your future credit card sales, and pay back the lender with a percentage of your daily sales plus fees.
- Business line of credit: You get access to a revolving credit line from a lender, which you can draw from and repay as needed, and pay interest only on the amount you use.
- Business credit card: You get a credit card with a credit limit from a lender, which you can use for business expenses and pay back monthly, and pay interest and fees on the balance you carry.
- Trade credit: You negotiate longer payment terms with your suppliers, which allows you to delay paying for the goods or services you purchase until you sell them to your customers.
- Early payment discount: You offer your customers a discount if they pay their invoices earlier than the due date, which incentivizes them to pay faster and improves your cash flow.
- Crowdfunding: You raise funds for your business from a large number of people, usually online, who donate or invest in exchange for rewards, equity, or interest.