08/25/2025
Is Selling Accounts Receivable Right for Your Business?
There’s a lot that goes into running a business—but if there’s one thing you can’t afford to ignore, it’s cash flow. If your business needs working capital, selling your accounts receivable may be a smart option. Like any important decision, it’s crucial to understand the pros and cons so you can decide whether invoice factoring is right for you.
In this article, we’ll break down how selling accounts receivable works, when it makes sense, and what to consider when choosing a factoring partner like AFS.
The Cash Flow Challenge: Extended Payment Terms
If your business sells to large commercial clients, you’ve likely had to offer extended payment terms—30, 60, even 90 days or more in industries like oil and gas. That waiting game can put serious strain on your cash flow.
According to recent data, 73% of small and mid-sized businesses are affected by late payments or stretched-out terms. Even worse, about 40% say it puts them at risk of shutting down. And yet, while you’re waiting to get paid, your financial obligations don’t stop:
- You still need to make payroll
- Hire new team members
- Buy inventory or maintain equipment
- Pay vendors, subscriptions, and utilities
Read more on our blog:
There’s a lot that goes into running a business—but if there’s one thing you can’t afford to ignore, it’s cash flow. If your business needs working capital, selling your accounts receivable may be a smart option. Like any important decision, it’s crucial to understand the pros and cons s...
