Understanding Invoice Factoring
Even so-called cash businesses sometimes establish charge accounts for larger customers, and these can lead to delayed and diminished daily cash flow. Add a few holiday closings and a slew of bad weather, and your business can find itself in a cash bind. Your employees will still expect their paychecks and your vendors will want to be paid. In the past, this situation was more easily remedied as you could simply go to the bank and request a business line of credit. If your finances were basically in order, your friendly banker would help you. Unfortunately, that's not the case anymore.