Factoring is a financial transaction in which a business sells invoices at discounted rates to a third party, also known as a factor. The factor then provides the business with an immediate cash advance for approximately 80% of the total invoice amount. With factoring, businesses can earn money consistently without having to go into debt while waiting for payments from customers. Factoring provides businesses with peace of mind so they can continue to go about their daily operations without having to worry about falling behind financially.