There are many ways your business can benefit from factoring below are some of the problems that factoring may help you solve or some of the reasons you may have not considered.

1. How does factoring help improve my cash flow? or
   How can I find more cash to operate my business?
   
   
   
   • You get cash in as little as 24 hours for your qualified invoices
     
     
   • The amount of cash you can get from your factor grows with your turnover
     
     
   • No debt is created. Factoring is not a form of a loan, this should still give you some financial leverage to take on debt.
   
   
   
2. How do I get my customers to pay in a more timely fashion? Or I am spending too much time collecting money owed to the business and not enough time running the business!
   
   
   
   • Factors basically provide a sales ledger management solution and a collections solution.
     
     
   • They will review your billing processes and make sure that they are as professional as can be. They may suggest changes to your terms & conditions which encourage customers to pay quicker
     
     
   • They understand the importance of your business relationships and will treat each of your customers in a professional fashion
     
     
   • They will free up your time as the factor does most of the work associated with processing invoices.
   
   
   
3. We want to take advantage of supplier discounts!
   
   
   
   • Many suppliers offer their companies discounts for paying their debt early or for larger orders
     
     
   • The increased cash flow from factoring will provide the liquidity to pay your vendors earlier or buy larger quantities
     
     
   • This will also positively affect your credit rating and should allow you to obtain credit from new vendors and financial institutions.
   
   
   
4. Other benefits:
   
   
   
   • No loss of business equity: Find the financing you need with out selling a part of your company
     
     
   • Meet seasonal demand: Factoring provides you with cash when you need it and allows you to reduce the advance when you don't need it. Many factors have special products for seasonal companies
     
     
   • Better credit control: The factor will be able to reduce the risk of bringing on a client that will not pay their bills. The factor will run a credit check on all of your clients and suggest a maximum debt amount that they can handle
     
     
   • Detailed management reports: Factors will provide you with tools that automatically track who owes you what and for how long they have owed you that debt