Factoring, Or Accounts Receivable Financing
Factoring occurs when a company sells it’s accounts receivables or it’s unpaid invoices to a third party. Usually this third party is a commercial financial company, also referred to as a “factor.” Factoring can guarantee cash flow in as little as 72 hours!
This type of lending is done so that businesses can receive cash more quickly than waiting for customer payments, which usually take anywhere from 30 to 60 days. Factoring deals can be completed within 24-48 hours of filling out an application.