Invoice factoring is one of the quickest, easiest ways for business owners to increase their cash flow. If your business produces invoices, then invoice factoring is an option for you.

The process of invoice factoring works in just a few simple steps. When an invoice is created, you sell it to the “factor” at a discounted rate – usually about 3 to 5 percent off of the invoice total. Factoring means you do not have to wait for the customer to pay to start collecting money from the invoice.

Invoices factoring increases your business’ working capitol and helps improve the credit rating of your business. And, when factoring your invoices, you are in control. You decide which invoices to factor and which ones to collect yourself, based on your relationship with your customer base. Also, if your business has poor or no credit history, invoice factoring is an option to consider if loans or liens won’t work for you, or if you consider them too risky.

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