Are factoring transactions true sales?

Answer: Yes
Explanation: Yes and no, depending on how the transaction is structured. The terms "Factoring" and "Accounts Receivable Finance" are many time used interchangeably and it's probably fine. It's an off balance sheet transaction that exchanges the value of receivables or even a single invoice for cash. This could structured as a straight sale with no recourse, a sale with a buy back clause or a loan on the value. Another related term is Invoice Discounting.

Answer: No
Explanation: Factoring transactions are an assignment of invoices by a business to a third party for a discounted fee.

Answer: Yes
Explanation: Accounts receivable financing is common practice. Services have been performed by the company on a credit-type basis but the vendor needs funds for operations or purchases. Getting cash advanced against receivables is one way of achieving those goals. Another way is INVOICE FACTORING for transactions that have not occurred. However, the vendor needs the upfront cash to be able to complete the job.