how does factoring work 
suppose a company is waiting on payment from its customers depending on the company s finances it may need that cash to continue operating its business or funding growth the longer it takes to collect the accounts receivables the more difficult it is for a business to run its operations factoring allows a company to sell off all of its outstanding invoices at one time rather than having to wait on collecting payments from customers the receivables are sold at a discount meaning that the factoring company may pay the company 80 or 90 of the full amount of the receivables 