Invoice or receivables factoring is a tool that will benefit any business or entity which sells goods or services and waits for invoice payment. Factoring is a tool through which businesses can get immediate money from a factoring company by selling their accounts receivable at a discounted rate. The discounted rate charged by a factoring company, is similar, and can be compared to offering your customers a discount to pay your invoice quickly, for example offering your customer payment terms of 2% for payment in 10 days.