Because cash-flow is one of the most dangerous and debilitating challenges for a business, factoring has become a vital tool – not just for survival but for development.
When a business has incurred the costs of purchasing materials and paying wages, it can be a step too far to wait 60, 90, even 120 days for payment.
For one thing, it’s difficult to measure the frustration of chasing invoices and listening to empty promises.
Equally as serious, low cash reserves can affect your relationship with suppliers or even stop you fulfilling new orders.
This is why more and more business owners are using factoring as an accepted element of their working capital funding, relying on the factor to manage the sales ledger and leaving them to concentrate their focus away from old debts and towards new business.