Look for Companies that are Members of the International Factoring Association

Written by Wall Street News on May 6th, 2019. Posted in Commercial factoring companies, Invoice advance loan, Service for international factoring

One of the problems faced by many small businesses is maintaining liquid finances while waiting for invoices to be paid. Depending on the type of business and their clients, invoices may commonly take weeks, if not months to be paid. This can create a cash crisis for the small business.

Many small business may opt for business loans or lines of credit that will provide the needed cash, but also increase the amount of debt the companies carries. While this may relieve the short-term cash gap, it will create a larger one down the road as you run into the same problem but now have an additional monthly bill to pay.

Invoice factoring allows companies to sell their unpaid invoices for up to 90% of the total amount. The factoring company than works on collecting the invoice amount from the client. This provides the small business with the cash they need upfront for invoices that will typically take weeks to pay.

Invoice factoring has become increasingly common within the fre