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Factoring is a process where you sell your invoices in exchange of immediate payment at a discount. Factoring companies keep the payable invoices and the business houses get cash immediately. It is a quicker, easier and better way to avoid long or short-term debts. Invoices act, as equity for almost all businesses but to get working cash flow is easily feasible through recourse and non-recourse factoring. So, while starting a business you have to keep a few things in mind, which are more important than your cash equity. Some of the things, which are counted as equity, are cash in hand, line of credit and invoices.
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