What is it?
Invoice Factoring
Invoice factoring is a financial solution where a business sells its accounts receivable to a factoring company in exchange for immediate cash. This method allows businesses to access the funds tied up in unpaid invoices without waiting for their customers to pay. Once the invoices are submitted and verified, companies like Pulse Factoring provide the necessary funds, effectively becoming your accounts receivable department.
For businesses looking to expand, take on new opportunities, or simply manage daily expenses, having working capital readily available is crucial. The delay caused by waiting for customers to pay, which can range from 30 to 90 days, can hinder growth and operational efficiency. Invoice factoring solves this problem by providing immediate cash flow, allowing businesses to maintain momentum and seize growth opportunities without incurring additional debt or diluting equity.