Companies facing cash-flow problems and slow-paying customers may sell their invoices or accounts receivable to specialized companies called factors. The factor company advances most of the invoice amount (70-90%), after checking out the credit-worthiness of the billed customer. When the invoices are paid, the factor remits the balance, minus a transaction (or factoring) fee. Resources:

• Is factoring a good way for you to increase cash flow?
• All about factoring