How Service Firms Sell Invoices to Bridge Cash Gaps

Cash Flow Conversations with Fexingo: Working Capital, Receivables, and Small Business Finance · Sep 12, 2026 · 11m · transcript

When revenue is recognized but cash isn't in the bank, small service firms face a unique liquidity squeeze. This episode examines invoice discounting as a targeted working capital tool, contrasting it with factoring and traditional credit lines. We break down how a mid-sized IT consulting firm used its unpaid invoices to cover payroll without diluting equity or losing customer relationships. The conversation covers advance rates, fees, recourse structures, and the hidden costs of borrowing against receivables. For listeners managing Net-60 terms, understanding this alternative could be…