Date Added: Jan 2010
As a small business owner there is often times when face a cash crunch. Small businesses generally have customers who pay after a period of 30 to 60 days or even more. Factoring involves selling of invoices or accounts receivables to the factoring companies. The factors will accept the receivables and provide you with cash, which may even is upto 80% of the invoice value. With this immediate cash in hand the bills can be paid off easily. While undertaking a new project, which needs the financial situation to be better off, factoring provides a double advantage.