Search Glossary:
  • Glossary Terms
  • Categories All Categories
    • All Categories
    • Home Loan
    • Credit
    • Refinance
    • Mortgage
    • Home Equity
    • FHA Loan
    • Auto Loans
    • Credit Repair
    • Personal Loan
    • Debt Consolidation
    • Reverse Mortgage
    • Auto Refinance
    • Credit Scores
    • Student Loan
    • Business Loan
    • Student Loan Refinance
    • RV Loans
    • Motorcycle Loans
    • Boat Loans
    • Powersport Loans
    • Pre Approval
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounts Receivable Financing
Search by alphabetic

Accounts Receivable Financing

Accounts receivable financing, also known as “factoring,” is a practice in which a business sells its invoices to a third-party financial company to collect upon.

More On Accounts Receivable Financing

Accounts receivable financing, also known as “factoring,” is a practice in which a business sells its invoices to a third-party financial company to collect upon.

​Some businesses choose to finance their accounts receivable to obtain cash more quickly than they would if they waited for their customers to pay within terms (usually 30-60 days). Though factoring companies can typically advance a business cash for its invoices within 24 hours, it often comes at a steep fee. Still, factoring is a viable option for many businesses that need funds immediately to continue operations.