Factoring invoicing is the practice of selling outstanding invoices to slow-paying customers to a third party, known as a factoring company. Instead of waiting for their invoices to be paid in full, businesses can sell them for an immediate cash injection, enabling them to focus on growing their business without worrying about when they’ll get paid. The factoring company takes over the responsibility of collecting payment from the customer, and pays the value of the invoice minus a fee. Factoring invoices helps businesses access working capital quickly while eliminating the need to take out short-term loans or wait weeks – or even months – before they see payment. It’s an effective way to keep businesses afloat during times of cash flow shortages.