Accounts receivable financing is a type of asset financing arrangement where the company uses the receivables as a collateral in the financing arrangement. The accounts receivable may be the most valuable asset of the company. No additional debt is being created by financing or factoring the accounts receivable and you do not need to give up the ownership of your company to obtain he working capital. But it can help your company immensely, it helps in expanding into new markets and working with a larger and demanding customers, receiving professional assistance with evaluation of the abilty of a new customer to pay. And last but not the least, the company receives cash within 2 hours from its most valuable asset.