Factoring
Factoring is the sale of receivables to a third party at a discount in exchange for immediate cash. This allows businesses to unlock cash flow by turning outstanding invoices into working capital. Factoring is typically used by businesses that need immediate liquidity but have long payment terms with customers.
By automating the factoring process, businesses can quickly access funds without manual intervention. AI-powered AR solutions help businesses identify eligible receivables for factoring and streamline the transaction. Factoring is particularly useful for businesses experiencing cash flow issues or needing quick access to funds.
Automating the factoring process improves the speed and efficiency of accessing cash, helping businesses stay financially healthy.