Accounts receivable financing allows businesses to convert their unpaid invoices (accounts receivable) into immediate cash without waiting for customers to pay. A financing company provides a cash advance, typically 70-90% of the invoice's value, and then collects the payment directly from the business's customer. Once the invoice is paid, the financing company remits the remaining balance to the business, minus their service fees. This service is a common solution for businesses, particularly small and medium-sized enterprises (SMEs), to improve cash flow, manage working capital, and fund operations or growth.

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