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Accounts receivable (A/R) finance, also known as accounts receivable finance, involves a company selling goods or services and issuing invoices with a set credit period for payment, typically 30 to 60 days. This delay can negatively impact cash flow, prompting businesses to seek financing options. By turning to a factoring company, businesses can receive an advance of 80-90% of the value of their unpaid invoices immediately after delivering goods or services. This allows companies to alleviate cash flow issues while still issuing invoices as usual, providing a financial solution to manage receivables effectively.