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What is invoice factoring?
What is invoice factoring?
Written by Marketing Team
Updated over a week ago

Invoice factoring is a form of financing where a business owner sells invoices to a factoring company for quick access to working capital. The business owner receives cash for the invoice amount, usually less fees, ahead of the payment terms. The business owner’s customer, who is responsible for paying the invoice, instead pays the invoice amount to the factoring company according to the original payment terms. Invoice factoring also goes by the terms accounts receivable factoring or receivable financing.

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