Receivables Financing: A Lifeline for Growing Businesses Understanding the Basics of Receivables Financing Receivables financing, also known as accounts receivable financing, is a financial arrangement where a business sells its outstanding invoices to a third party, typically a financier or a bank, at a discount. This process allows the business to receive immediate cash instead of waiting for the payment terms of the invoices to be fulfilled. Essentially, it converts accounts receivable into working capital, providing a steady cash flow to meet operational needs.