Factoring 'makes good business sense'

14/02/2008

Using factoring services to resolve cash-flow issues can often make good business sense, it has been asserted.

According to Brian Solomon, web editor at TMC.net, even the most efficiently run companies will sometimes find they need to make up for a temporary shortfall and in this situation debtor finance can offer a solution.

Furthermore, Mr Solomon has claimed that for firms that have only been up and running for a relatively short period of time can turn to factoring if they are finding it tough to get approval for a business loan.

"At certain times companies do not pay because they have a tight cash flow, or there is an issue with the paperwork on their end," he wrote recently for TMC.net.

"Using factoring services can help to deal with the headaches of invoice collection."

Last week, the invoice discounting provider Interface Financial Group insisted that small firms across the US are looking to find new ways to fund their operations, which has sparked increased demand for its services.