The Ultimate Guide to Invoice Factoring: Boosting Cash Flow for Small Businesses
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  • Time 8m
  • Reads 2
  • Votes 0
  • Parts 1
  • Time 8m
Ongoing, First published Jan 18, 2024
Invoice factoring is a financial transaction where a company sells its accounts receivable (invoices) to a third-party financial company, known as a factor, at a discount. The factor then collects payments from the customers on those invoices. It provides immediate cash flow to the business that would otherwise have to wait for the payment terms on those invoices, albeit at a lower amount than the actual invoice value due to the discount.
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