This overview summarizes the basics of accounts receivable financing, helping companies understand its key features and benefits. accounts receivable financing, also known as invoice financing or factoring, is a financing solution that enables businesses to access immediate cash flow by leveraging their outstanding invoices. How it Works: Businesses sell their outstanding invoices to a financing company, known as a factor, at a discounted rate. The factor advances a percentage of the invoice value, typically around 80-90%, to the business upfront. The factor assumes responsibility for collecting payments from the customers who owe the invoices. Once the customers pay the invoices,...