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Is factoring receivables a good idea?

If you are a business that is experiencing cash flow shortages or is fast growing and cannot access bank loan financing, if you are a start up or have bad credit or you just need access to quick cash in order to maintain operations or invest in growth then factoring receivables may be a good idea for you.

Maintaining cash flow is essential to the success of a business and by selling your receivables to a factoring company you can gain quick access to cash without the requirement of assets or by committing to long term agreements.

The costs of factoring differ but it can help maintain and grow your company whilst also removing some of the issues around collecting your receivables.