Factoring

Factoring, also known as invoice finance, is a financial solution where a business sells its unpaid invoices to a specialized company, known as a factor, at a discount.

This enables the business to receive a quick injection of working capital, usually a percentage of the invoice value, before the customers pay. The factor then takes responsibility for collecting the payment from the customers. Factoring is a valuable tool for businesses seeking to improve cash flow and maintain a healthy financial position while avoiding the delays associated with waiting for invoice payments.