Invoice Factoring is a financial product that enables businesses to receive immediate cash payments, now instead of waiting 30-90 days for payment on outstanding invoices. It is the act of selling your unpaid customer invoices with a third party, called a factoring company, in return for immediate cash payments. In exchange for cash up front, they are discounted at a rate slightly lower than their face value, typically between 75%-90%. Factoring helps businesses generate cash flow more quickly so they can invest in operations and growth.