How Do I Use Factoring for Quick Cash? | Operations > Billing & Receivables from AllBusiness.com
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How Do I Use Factoring for Quick Cash?

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Factoring is the practice of selling accounts receivables (invoices) in exchange for instant cash. It can be a quick and easy way to get needed funds, but remember: Customers who discover you have sold your receivables to another company might consider it a sign that your business is unstable or going under.

Plus, the cost of factoring is higher than the cost of a short-term loan or a line of credit. That's why companies use factoring only as a last resort.

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