What is Factoring?

Factoring is a method where a business can finance money for operations without taking a traditional business loan. Factoring allows a company to sell its account receivables at a discount to a third party for an immediate lump sum. The third party can then collect on the receivables in order to repay the debt. a variation on factoring is merchant advance, which enables a company to receive money based on future credit card receipts. Look here for more information: