Factored invoices are a form of financing that is used by businesses to solve their short-term cash flow issues. Essentially, a business sells its customer invoices to a third party entity known as a “factor” at a discounted rate in exchange for a lump sum of cash up front. This enables the business to have immediate access to the money it has earned, without having to wait for customers to actually pay. Factoring is a great way for businesses to keep up with their cash flow commitments and remain competitive in today’s fast-paced marketplace.