What Types of Businesses Should Use Factoring Services?
Though factoring loans is available to any business that invoices or extends credit, certain companies can greatly benefit from using factoring services. High-risk businesses and businesses that have a long delay between when a customer is billed and when payment is received are the most likely to benefit from factoring services. High-risk businesses, such as those in very new and undeveloped industries, are usually not in the position to seek financing from traditional sources, even though they may have a steady income. Factoring is a good way to leverage the power of the money you are owed. Selling invoices allows a new or developing business to pursue opportunities for further growth. Businesses that sell a tangible product and maintain a large inventory, such as retail stores, are a good example. Service oriented businesses with large business receivable accounts from continuing customers, such as temp agencies and transportation service companies, are also good candidates for fact
