What is Invoice/AR Factoring?
Invoice Factoring, also called Accounts Receivable Factoring, is a financial service that allows a business to sell its outstanding receivables to a financial institution called a Factor, and receive immediate cash funding. The factoring companies buy the invoice from you today for an amount less than face value, then later collect the full amount when the receivable is due. If your business sells products or services to other businesses or governments on credit terms, factoring receivables can eliminate the long billing cycles that put a strain on your cash flow.
