What is invoice factoring?

Invoice factoring is an effective form of business financing: 

Rather than waiting 15, 30 or 60+ days for invoices to be paid, a factoring company will purchase your outstanding invoices and pay them in as little as 24 hours. 

Cash now, for invoices due in the future means your company can use the cash to cover business expenses. 

Let’s consider some cash flow challenges. Do any of these situations sound familiar? 

• Have you offered your customers credit terms, which means they pay up to 90 days after an invoice has been issued?
• Has the bank said NO to your business loan?
• How about your line of credit? Is it at capacity?
• Is your cash flow becoming a constant challenge?
• Have you recently increased capital expenditure, negatively affecting your cash flow?
• Is your business credit too low to qualify for a traditional business loan?
• Do you need to improve your cash flow in order to grow?
• Does your company struggle to meet payroll? 

Late payments can quickly cripple cash flow and bring a small or medium business to their knees. If these challenges sound familiar to you, invoice factoring could be the key to get your cash flowing.

Next » How can invoice factoring help your cash flow?