Factoring is a financial service that allows businesses to sell their accounts receivable to a third party, known as a factor, in order to receive immediate cash.

Traditionally, factoring has been a slow and paper-based process, but blockchain technology could change this. By using a blockchain-based platform, businesses could factor their invoices faster and with greater transparency.

For example, a smart contract could be created that automatically pays the factor when the invoice is paid by the customer. This would reduce the time and costs associated with traditional factoring.

Additionally, blockchain could be used to create a shared database of invoices.