https://www.factoringcompanyguide.com/ Factoring, also known as invoice financing, is an alternative financing method used by growing small businesses and corporations to improve their cash flow. It concentrates more on your company's growth rather than constantly fighting cash flow challenges. Unlike a bank loan, you do not incur debt or need collateral to secure the cash. Factoring professionals focus on the creditworthiness of your clients. When your customers pay your invoices on time and establish solid payment history, the factoring company pays you up front for the invoice amount. You receive the balance once your client has paid the invoice for a small factoring fee.