Supplier factoring is a financial tool that businesses use to accelerate their cash flows. It involves a third-party lender, known as the factor, providing loans to the supplier and then collecting payments from their customers directly. This allows the supplier to receive immediate payment for the product or service that they have provided, without having to wait until their customer pays them. This helps them to keep their business running smoothly, without any delays due to cash flow issues. Additionally, it can be an invaluable tool for suppliers who are just starting out, as it enables them to gain access to cash much sooner than would be possible through traditional forms of financing.