This is the practice of selling accounts receivables for an upfront lump sum of cash. Factoring allows for an increase in working capital and thus improves business cash flow. Rather than wait on customers to pay their invoices, this product provides an opportunity for your business to obtain immediate capital and avoid the risk of non-payment. Another major benefit of factoring invoices is that it is not a loan, and thus does not have an impact on your balance sheet. Factoring allows for you to be paid for work that you have already completed.