Invoice factoring,
Definition of Invoice factoring:
The selling of invoices to a third party company to improve cash flow and reduce bad debt. When a business uses invoice factoring, they benefit through an immediate boost to cash flow, while at the same time eliminating the need to process invoices. An additional benefit of invoice factoring is the reduction in bad debt as the third party buyer assumes all risk if the invoice is not paid.
Meaning of Invoice factoring & Invoice factoring Definition