Seamlessly turn outstanding invoices into cash flow.
What is Invoice Factoring?
Invoice factoring, also called factoring receivables, is a financial transaction where a business sells its invoices to a third party (a factoring company). In return, the business receives an advance based on a percentage of the total value of the invoices. The factoring company then assumes responsibility for collecting payments from the customers who owe the outstanding balances.
Understanding Factoring Receivables
Whether you know this financing strategy as “factoring receivables” or “invoice factoring,” many businesses choose to factor invoices to enhance their cash flow and business growth.
By selling invoices to a factoring company, a business gets an immediate payment instead of waiting on outstanding balances to be paid, helping improve cash flow and facilitate continued growth and operations.