If you are looking to better manage your finances, factoring can help you. You will be able to quickly borrow money to cover your expenses and establish cash reserves that can be used for other operations. Factoring is the process of selling the rights to claim a debt. These rights can be sold to a third party, which has immediate access to all funds owed by the customer and the ability to initiate legal proceedings on behalf of the debtor. Factoring is most often used in business transactions such as when a business wishes to pay for an order that they have not yet received or completed, or when they need short-term liquidity for payroll and other expenses.