Companies that are looking for extra ways to improve their cashflow have quite a few options to consider. They do not, however, usually include borrowing money from banks or commercial institution where repayment penalties are high.

Many business owners consider factoring to be the best financial solution for their new or existing companies. This is due to the small number of requirements involved in obtaining assistance from invoice factoring companies in general.

The advantages of using invoice factoring services are many; first, factoring is not a loan, in the accepted sense of the term; second, it involves only three parties and third, value is not placed on the company’s worth, but rather on the value of the invoices it wishes to sell or borrow against. This is a great investment tool for most businesses, especially if they do not qualify for a bank loan.

If a company chooses to go down the invoice discounting route as a possible financial recourse, it may qualify for additional services, such as invoice finance.

This service has no limitations on the number of invoices a company can sell. It can sell just a small percentage of its invoices or all of them, at a very competitive rate.

The money received is not a loan, it is payment for services that have already been performed and for which payment is pending.

Many new businesses can take advantage of this service, the only asset they need is a reliable and trustworthy list of clients who are a low credit risk.