An unpaid invoice represents money a business has genuinely earned but hasn’t yet received, sometimes for thirty, sixty, or even ninety days after the work is complete. Invoice factoring converts that pending payment into immediate, usable cash, addressing one of the most common cash flow challenges business-to-business companies face. How Invoice Factoring Actually Works Unlike a traditional loan, factoring involves selling an outstanding invoice, or a batch of invoices, to a financing company at a discount, in exchange for immediate