Invoice factoring is a financial transaction in which a business sells its accounts receivable to a third party, known as a factor, at a discount in order to obtain immediate cash flow. This process, often referred to as accounts receivable financing, allows companies to manage cash flow effectively while outsourcing the collection of outstanding invoices.
Get StartedInvoice factoring is a financial strategy that enables businesses to convert their accounts receivable (AR) into immediate cash. By selling outstanding invoices to a factoring company, organizations can boost their cash flow without waiting for customer payments. This approach provides essential working capital that can be utilized for operational needs, investment opportunities, and overall financial stability. Invoice factoring serves as a practical solution for companies aiming to enhance their liquidity and alleviate the challenges posed by slow-paying clients.