Invoice Factoring: When Is It A Good Idea And When Is It Not?
If you're looking up alternative types of business loans, you may have run across something called "invoice factoring." Invoice factoring can sound mysterious but it really isn't: you're essentially selling a portion of your collectible sales for a percentage. The company you sell this debt to then takes on collections and your company gets a cash advance right away. Like all financial tools, there are good situations for this and bad situations.
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