Accounts Receivable
Accounts receivable financing is something that a lot of business owners rely on. When cash flow problems start to arise, it can often be damaging for relationships with your clients if you start to call your invoices in early. Whilst some business owners will take the risk, others look into a method of financing known as invoice factoring. What happens with invoice factoring is that you as the business owner sell the invoice owed to you, to a invoice factoring company. They will pay you below face value for the invoice, but you get your money upfront without waiting for the invoice to be paid. The debtor who owes the money in the invoice will then pay directly to the invoice factoring company.