Approximately 82 percent of small and medium-sized enterprises fail due to cash flow problems. Of course, several factors can affect your cash flow. An aging accounts receivable or invoices that are past their due dates may account for a fair share of your cash flow challenges.
Luckily, there are financial tools and different forms of asset based lending you can use to manage your cash flow gaps. Invoice factoring is one excellent solution to your cash flow challenges if you’re a business owner with net 30, net 60, or net 90 terms with buyers.
Read on to find out whether invoice factoring is right for your business and how to compare invoice factoring vs line of credit.
Invoice factoring is the financial solution commonly referred to as accounts receivable factoring. In this form of financing solution, a b…