Often times referred to as factoring, accounts receivable financing is simply the process of selling your accounts receivable (invoices) to a third party.

• C & D Credit Acceptable
  
  A big plus with this type of financing is that a business doesn’t have to have ‘good credit’ in order to qualify for it. Usually, when a third party is looking to purchase accounts receivables, the lender is more interested in the credit history of the customer – the one who actually owes on the receivables – than it is with the credit of the business who is selling the receivables. Thus, this type of financing is a viable solution for those businesses that might otherwise not have access to capital elsewhere.
  
  
• Quick Funding
  
  A second advantage with this type of financing is that a business can usually receive the proceeds within 24 hours. By getting paid immediately, a business is then free to pursue other projects, pay suppliers early (thereby taking advantage of discounts), purchase inventory, pay employees, and pay other operational expenses.
  
  
• Eliminate Collections
  
  A third advantage is that the party buying the receivables assumes all responsibility in collecting from the customer. That is, once the receivables have been sold by a business, it no longer has to worry about going after the customers to collect. The third party assumes that responsibility. A business selling its receivables would then be free to pursue newer and bigger opportunities.