Invoice discounting is a short-term financing solution that allows businesses to access funds against their unpaid customer invoices instead of waiting for the payment due date. A lender advances a percentage of the invoice value, helping businesses maintain cash flow, pay suppliers, manage operating expenses, and support growth. Once the customer pays the invoice, the business settles the advance and applicable fees with the lender. Invoice discounting is particularly useful for businesses that sell on credit and need working capital to manage day-to-day operations without waiting for customers to pay.