Invoice Factoring

Invoice factoring is a financing method where a business sells its unpaid invoices (accounts receivable) to a third-party company at a discount in exchange for immediate cash. The factoring company then collects payment directly from the business’s customers. Once the invoices are paid in full, the factoring company sends the remaining balance to the business, minus fees and commissions. This approach helps businesses improve cash flow by turning outstanding invoices into quick working capital, enabling them to manage expenses or seize new opportunities without waiting for customer payments.