Factoring is one of the oldest forms of financing. It allows companies to maximize their cash flow by receiving funds early for their receivables to be used for expansion, payroll, bill paying, or whatever the capital is needed for.
 Moreover, its process is very simple. Factoring is not a loan. This is because you sell your accounts receivables for an immediate injection of cash. You generally get an 80% advance from your invoice instantly. The remaining 20% is paid to your company when the invoices are paid.
Basically, you are outsourcing your credit and collection department. In this way, you get your money more quickly. Besides, you will also realize many other profits as well:
Credit Examination
This provides a safe keeping net minimizing risk of doing business with slow-pay or no-pay customers. You can minimize your losses through risk management.
Invoice Ledgering and Accounting
Your company is provided by factoring company with full accounting of all activities done on your behalf with simple ledgers. This information can be downloaded from your on secured web site directly into your company booking software. It is possible because of that fact that some companies have online access.
Immediate Funding
Usually 80% of the invoice is funded within 24 hours.
Follow-up and Collections
The Factoring Company follows up on the invoices to influence timely payments. This reduces your personnel and factoring cost.
Aging and Other Reporting
As some Factoring companies have a State of the art reporting service available on a customized web site, you can access 24/7.
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