Factoring payables is a key business practice that helps companies access working capital. It involves selling accounts receivable to an outside third-party in exchange for immediate cash. This injects liquidity into the business and allows it to manage invoices more efficiently. When factoring payables, the third-party assumes responsibility for collecting from customers and assumes most of the risk associated with non-payment. By factoring payables, businesses are able to free up cash to reinvest in operational expenses, marketing initiatives, and more.