Invoice factoring also known as accounts receivable factoring is the process of selling your unpaid invoices at a small discount to immediately increase cashflow.
This type of financing is designed to assist businesses stay afloat as their company grows at a rate beyond there current financial capabilites.
Invoice factoring is quite simple. Once you get approved by a factor, a line of credit will be given to you. The size of your factoring line of credit is determined by the amount of unpaid invoices you have.
At anytime, You’ll be able to immediately raise your invoices to turn them into instant cash. Companies that factor their invoices can: