![]() What does it mean when you “sell an invoice”?īy selling an invoice, a business owner receives immediate cash from the factoring company, which then takes over the responsibility of collecting the payment from the clients. Instead of waiting for the clients to pay the invoices, a business owner may sell these receivables to a factoring company, an external third-party financing company. Invoice factoring is in essence a financial transaction that involves three parties: the business owner, the clients, and the factoring company. ![]() ![]() Invoice Factoring is a type of financing that specifically addresses the cash flow issues of companies who often deal with slow paying invoices. Whether you are just starting out on your business or you are dealing with a particularly difficult financial challenge, you may want to look into Invoice Factoring as a way to address your cash flow concerns. One of the most common courses of action when dealing with money shortage due to slow paying receivables is Invoice Factoring. Not all companies have funding stability, and small business owners may have to deal with outstanding invoices that can take up to 30 or 90 days before getting paid. Financial difficulties may arise every now and then, and sometimes you just don’t have enough cash on hand to shoulder your business’ immediate needs. Running a business can be frustrating at times.
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