Invoice discounting, also known as invoice factoring, can be incredibly useful to businesses of all sizes and stages of growth. This article will walk you through the different types of invoice discounting, helping you figure out which one will be the best fit for your company’s current needs. 1) Purchase Order Factoring In purchase order (PO) factoring, a company sells its unpaid invoices—basically selling its right to be paid by a client—to a third party. Factoring companies then collect payment on those invoices from clients directly or use their own accounts receivable (A/R) department to do so. Purchase order factoring is useful for businesses that regularly sell goods and services on credit and need help managing cash flow while they wait for payments. It’s also good for business owners who want to free up working capital but don’t want to incur debt or interest expenses associated with traditional loans. It’s important to note that PO factoring isn’t free: A factor will take a percentage of each invoice as an administrative fee. https://bcashflowpositiveinvoicediscounting.blogspot.com/2022/06/3-types-of-invoice-discounting-to-help.html