Factoring Can Offer A Short-Term Financing Alternative, But Watch The Fees

Factoring is one option to consider when searching for short-term financing alternatives for your small business. As an asset-based financing arrangement, factoring allows you to sell your accounts receivables or invoices to a specialized financing company - called a factor - at a discount. Typically, the factor will pay between 70% and 90% of the value of the receivables and then take over collection efforts.