Invoice Factoring
Converting unpaid customer invoices into immediate cash by selling them to a funding company.
Invoice factoring allows a business to sell its outstanding, unpaid invoices to a factoring company in exchange for immediate cash – typically a percentage of the invoice value upfront, with the remainder (minus a fee) paid once the customer settles the invoice.
This is commonly used by businesses that operate on payment terms like net-30 or net-60 and need to bridge the gap between delivering work and getting paid for it.
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