Sell account receivables is where your A/R and open invoices are your most valuable asset. You sell your open invoices at a small discount and you get the cash now.
Benefits
You don't give up equity as with investment capital or new partners.
You can take advantage of supplier early payment and volume discounts.
You have the ability to make volume purchases from suppliers.
No more offering early payment discounts to customers.
Elimination of your bad debt. Factoring is non-recourse.
No additional debt, factoring is not a loan. (off balance sheet)
.jpg)
