How can factoring help my business improve cash flow?

Factoring is a process by which a business sells its invoices to a specialist factoring company (a factor) and receives quick payment in return as a cash advance. For a small fee, the factoring company chases the debt and deals with any non-payment issues, removing all the hassles associated with invoice administration.  Factoring can dramatically improve cash flow and boost company growth as it guarantees income and releases monetary assets that would otherwise be tied up in invoices (essentially providing instant access to money belonging to the business but which hasn’t yet been paid by debtors). Therefore, it is perfectly suited to start-ups and small companies, service based industries that rely on invoicing and businesses that wish to fund periods of rapid growth.