A small business is enabled to sell off its accounts receivable and invoices to a financing company when it outsources its accounts receivable.

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Factoring or invoice financing allows a small business to sell off its accounts receivable and invoices to a financing company, allowing them to receive a portion of the money immediately, while the financing company collects the full payment from the customers. This is a common form of outsourcing accounts receivable.

A Small Business Is Enabled to Sell Off Its Accounts