Accounts receivable financing turns unpaid invoices into immediate cash for businesses. Instead of waiting for payments, invoices are sold to a financing company for upfront cash. Here are its key traits:
Invoice conversion: Businesses sell unpaid invoices for immediate working capital.
Immediate cash: Access 70-90% of invoice value upfront for working capital.
Third-Party collection: The financing company manages customer payments.
Customer credit: The creditworthiness of customers is considered.