Factoring invoices is a process of financing a business that involves leveraging their accounts receivable to secure working capital. It is also known as invoice finance, accounts receivable financing, or simply factoring. With invoice factoring, businesses can quickly obtain cash for outstanding invoices without having to wait for customers to pay on time, allowing them to have immediate access to the funds they need and reducing the risk of bad debt caused by late payments. The procedure is simple: businesses sell their outstanding invoices to an invoice factoring company at a discounted rate in exchange for quick and easy cash. This allows the businesses to grow and succeed while the factoring company takes on the risk of collecting payment from the customer.