Factoring On Small Business
Factoring is the process of selling credit worthy accounts receivable for immediate cash. This cash flow tool has been around for over 100 years and has recently become a powerful way for small businesses to prosper and compete with big businesses. As a small business grows, it is often forced to offer flexible selling terms to its customers. This puts a strain on cash flow and creates the need for new financing options. By factoring invoices a business can offer flexible terms with the confidence they will have cash for the sale within one day.