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accounts receivable financing accounts receivable financing is a type of funding in which a company sells its outstanding invoices to a third party for a reduced amount of their value this is basically like the company selling the right for others to collect debts that are owed to the company the exact details of an accounts receivable financing contract can vary the business selling its debt may or may not remain responsible for getting its customers to pay their invoices when the business remains responsible it still has to take action to make sure customers pay their invoices on time and in full otherwise the company might end up owing the funding provider for those unpaid invoices but in all cases the goal of accounts receivable financing for the business selling its debt is the same to receive cash lets see an example Janene as a solo law practitioner she has close to a million dollars in accounts receivable mostly invoices that opposing parties oh for her clients legal fees Jani
