Factoring is the practice of selling accounts receivables (invoices) in exchange for instant cash. It can be a quick and easy way to get needed funds, but remember: Customers who discover you have sold your receivables to another company might consider it a sign that your business is unstable or going under.
Plus, the cost of factoring is higher than the cost of a short-term loan or a line of credit. That's why companies use factoring only as a last resort.

