The vast majority of businesses around the United States have less than 500 employees and are considered to be “small.” These account for about 99.7% of all American businesses. U.S. Bank has estimated that nearly 82% of businesses that do not succeed can blame that on problems with their cash flow. In fact, almost 60% of invoices to small businesses are not paid on time. If you are a small business owner, you may have had this problem yourself, this is often when invoice factoring companies step in. What is the invoice factoring process and how can it benefit my business? Read on to find out.
The invoice factoring process is more simple than it may seem at first. The basic principle behind it is that businesses sell their account receivable to a company that handles invoice factoring services. In the United States invoice