Accounts receivable financing is a financing option that allows businesses to leverage their outstanding invoices to access immediate working capital. Also known as factoring, this financial solution involves selling accounts receivable invoices to a third-party funding provider, known as a factor, at a discounted rate. By doing so, businesses can convert their unpaid invoices into immediate cash, eliminating the need to wait for customer payments. Accounts receivable financing offers numerous advantages, such as improving cash flow, enhancing liquidity, and providing businesses with the necessary funds to cover operational expenses, invest in growth opportunities, or address unforeseen financial challenges.