Accounts receivable financing is a way to finance your operation by resorting to your accounts receivable but were in a credit term that you offered to your customers. Also known as invoice discounting or factoring, this type of financing has been considered an attractive option most especially that more businesses are impacted by COVID-19. The working capital you acquire enters directly as cash and is reflected in your assets on your balance sheet, so it is a way to inject liquidity and have a better cash flow.
Source: https://www.entrepreneur.com/article/357356?utm_source=feedly&utm_medium=webfeeds
