Factoring Companies Why Invoice Factoring is Necessary
In recent years, an increasing number of businesses have discovered that invoice factoring can combat the ups and downs of unpredictable cash flow cycles. More importantly, factoring companies are providing the business community with a viable credit financing source of working capital when conventional business financing is not always an option.
People consider the invoice factoring discount a small cost of doing business. A two-three-percent factoring discount for a 30-day invoice is common. Compared with the problem of not having cash when you need it to operate, the receivable credit line discount is negligible. Look at the invoice factoring company collecting the discount as though your business had offered the customer a discount for paying cash. It works out the same.
