Invoice Factoring, also known as “invoice financing”, is a quick solution to receive capital on time. It is a financial transaction in which a business sells its AR ( Accounts Receivables or Invoices) at a discount to an external financing company. This enables the company selling its invoices or AR to receive the funds much sooner than waiting the typical net 30,60, or 90. Companies can use an invoice that has not yet been paid as collateral for an advance on the amount of the invoice pending payment. Typical lenders will provide anywhere between 75-96% of the total value of the bill.