Most small to medium size companies will at one time or another suffer from a shortfall in cash. To remedy the short term problem, a company can draw on a line of credit if available, obtain a short term loan, stretch out payments to vendors and act to collect outstanding receivables.
For the small company, many times these options are not available. Invoice factoring can provide a direct solution for the small company. Once established, the company can sell invoices for cash when there is a short term cash flow problem using the service only when required.
By selling some receivables there is now cash available for payroll, supplies, vender invoices etc. Access to cash when it is required can ease the burden for small business.
