Small Business Success 

Invoice Factoring Over A Bank Loan

Many successful businesses are now utilizing invoice factoring as an effective solution to their cash flow problems instead of pursuing a traditional bank loan. Invoice factoring is a type of financing that businesses use which involves selling their accounts receivables to a financing company which pays their invoices for them. The financing company takes on a certain amount of the credit risk of customers who owe the business until they are reimbursed once the customers pay their invoice in full.

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.

Invoice Factorting as a Business Financing Alternative 

Infographic on Small Business Invoice Factoring

How to Choose An Invoice Factoring Company 

Evaluating services - it's not just about the rate, make a complete comparison

How Invoice Factoring Works 

Cash Flow Solution

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