What invoice factoring means
Invoice factoring is selling your unpaid invoices to a finance company for a discount, so you get most of the cash now instead of waiting for the customer.
Where it shows up in your business
It can bridge slow commercial payers, but the fees eat into margin. Compare the cost with simply tightening deposits and payment terms first.
Work it out
- Money guide: Payment terms and net 30
- Money: Money guides for contractors