Accounts Receivable Financing, sometimes called Invoice Factoring, functions as working capital when your business has unpaid customer invoices that you can’t wait to be paid. You can use invoices to get cash now. Best for businesses with unpaid invoices that need fast funding which is easier to get approved for compared to other similar options.
Pros:
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Fast Cash
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Fairly simple and easy approval
Cons:
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Cost of borrowing may be high
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Only to Business to Business and Business to Government companies can qualify
Best for:
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Business with invoice that need cash right away
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Invoice with 30, 60 or 90 day payment terms are best
