Debt Factoring

Debt factoring, also known as invoice factoring or accounts receivables factoring, is an alternative financing method where businesses sell unpaid invoices to a third party (known as a factoring company) in exchange for a cash advance. Once the factor receives payment from your customers for the outstanding invoices, you receive the remainder of the unpaid invoice value, minus a small factoring fee.

Debt factoring is particularly helpful for small businesses that do not qualify for traditional loans but are looking to improve cash flow and accelerate access to working capital.