Sellers make a transaction with the customer and raise an invoice. These invoices are due in 30 days, 90 days, or whatever, depending on the business terms of the supplier and their customers. Hence, their customers don't pay the sellers immediately. In those cases, where the seller wants immediate cash to operate or generate more business, they can opt to sell their outstanding receivables. This allows sellers to meet their immediate needs. The invoice seller usually puts the outstanding invoice for sale at a discount. The buyer usually accepts the discount and immediately pays the seller. However, the buyers only pay the discounted amount, for example, 90% of the total invoice amount. Behind the scenes, the buyers check the credit history of the payer (customer) since it is the customer who will finally pay the buyer. During this process, there are three parties—the invoice seller, the invoice debtor (payer), and the invoice factor (buyer). Such invoice factoring is also referred to as account receivables financing or account receivables factoring. It is a kind of asset-based lending (ABL), which allows a seller's account receivables to be collateral.