Can Invoice Factoring Benefit Your Business?
Are you a business owner? Does your business produce invoices? Are you looking for a way to increase cash flow every month? If you have not considered invoice factoring, it's time to take a look. Invoice factoring means you sell your invoices to an invoice factoring company, your "Factor." The invoice is sold at a discount, generally about 3 to 5 percent. The factor pays you, and your customers pay them. That means you no longer have to wait to collect from your clients. No more slow cash flow! You can decide which invoices to factor. You do not have to factor every invoice. Points to consider when deciding which invoices to factor include client payment history and credit with your business.