Buying Accounts Receivable -

: A business provides its unpaid invoices for completed goods or services to the buyer.

Provides immediate cash flow to meet payroll or operational expenses without taking on traditional debt. buying accounts receivable

It is important to differentiate between buying receivables (factoring) and borrowing against them (financing): : A business provides its unpaid invoices for

: Once the customer pays, the buyer remits the remaining balance to the seller, minus a factoring fee (usually 1% to 5% ). Key Benefits for the Parties Involved For the Seller : buying accounts receivable