Blog Central

Invoice
factoring allows you to turn your slow paying invoices from good
customers into immediate cash. It is a very simple transaction in
which you trade an invoice - “almost cash” - for actual
cash. Basically, the factoring company provides financing solely on
the power of your soon to be paid invoices.

Provided
that you have good customers, you can repeat this process for every
invoice you have, almost indefinitely. If you sell products to good
credit worthy customers, a factoring company will gladly purchase
your invoices. There are no limits, except how much you can sell.

One
important thing to know about factoring is that it doesn’t generate
debt. The factor does not loan you money for your invoices. It buys
them outright from you at a small discount. Since factoring is not a
loan, qualifying for it is easy and your financial statements look
cleaner. You just need a well-run business and great customers.