Date Added: Jan 2010
As a company grows, so do their need for funds. This comes from the fact that as the companies are growing they will have new customers coming in with invoices, which are on a credit period of 30-60 days. This often leads to deficiency of funds for cash requirements of the business. This is where business factoring comes to the rescue, providing companies with funds at a time when it may not be possible to get any funds from banks. Business factoring is using your receivables as collateral to get cash advances from financial institutions satisfying the funding needs.