Small business invoice factoring, a financial service, provides businesses with immediate access to cash by selling their outstanding invoices to a factoring company. For instance, a small business that sells $100,000 worth of goods on credit can obtain up to 85% of that amount from a factor within 24 hours.
Invoice factoring can be crucial for small businesses that need to cover expenses or invest in growth, as traditional bank loans can be difficult to obtain and slow to process. Historically, factoring has been used for centuries, with the first recorded instance dating back to the 13th century.
