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What Is Factoring Receivables and How Does It Work for Businesses?

CrossChainRider  · 2025-06-13 ·  10 days ago
137

As a small business owner in the U.S., I’m struggling with cash flow because clients take too long to pay invoices.  I’ve heard about factoring accounts and terms like receivables factoring, accounts receivable factoring, and AR factoring, but I’m not sure what they mean.


How does factoring receivables work, and can it help my business stay afloat?  I’m also curious if this is relevant for industries like crypto or Bitcoin-based businesses, where payments can be irregular.


What are the benefits, and are there risks I should know about? Factoring receivables sounds like a solution to get quick cash, but I’m worried about costs and how it impacts my clients.


I want to understand the process clearly and see if it’s a good fit for my business. Are there specific platforms or services in the U.S. that make AR factoring easier for beginners in industries like cryptocurrency?

1 Answer

  • What is a factoring account?

    A factoring account is usually set up between a business and a factoring company. It’s used to track the sale and purchase of accounts receivable. In simple terms, you sell your unpaid invoices at a discount to get immediate cash, instead of waiting 30-90 days.


    How does receivables factoring apply in crypto?

    This concept is now evolving into the crypto space too. If your business sends out invoices (even in stablecoins or BTC/ETH) and you’re waiting on payments, crypto receivables factoring


    lets you get paid early , Some DeFi protocols and B2B crypto platforms are testing smart contract-based AR factoring using stablecoins and tokenized assets. It’s new, but it’s growing fast.


    Regional Insights: Crypto Factoring in the UAE

    Since you’re in the UAE, there are more flexible fintech players here. Platforms like BYDFi or BitOasis might not offer direct AR factoring yet, but third-party crypto lenders or DeFi protocols could help. Some UAE-

    based exchanges are partnering with invoice tokenization services that allow you to collateralize your AR in crypto and get USDT or AED.


    When should you consider accounts receivable factoring (AR factoring)?

    • If your crypto business has clients with long payment terms.
    • If you issue invoices and don’t want to wait for liquidity.
    • If you prefer to operate with stable cash flow in crypto.


    Ready to learn more about trading strategies and crypto safety? Check out BYDFi for beginner tutorials, expert insights, and the latest updates on Bitcoin and other cryptocurrencies.


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