Factoring is one of the options that a company should implement as part of its method of collecting accounts.
It operates through a contract by which one company sells the receivables of business activities (invoices) to a third party, so that the latter is responsible for managing the collections of said assets.
When you choose a company specialized in factoring services, they will auction your invoices and then you will receive the amount of the invoice minus a small percentage as a commission for their service.
Factoring is as simple as that!