Factoring Companies

Factoring is a financial transaction in which invoices are sold to a third party, called a factor, at a disount for immediate cash to improve the cashflow of a business. Factoring is not to be confused with bank loans however as factoring is the purchase of a financial asset and involves three parties, unlike traditional bank loans.
Factoring should be considered for businesses that have tight cashflow, decent turnover but slow cash generation from invoices. It can make a significant impact on the cashflow, which can then be invested in other areas of business growth.
There are other mechanisms to improve cashflow, which are worth trying before signing a factoring agreement, such as changing your supplier's terms of business so they are more favourable towards your business' cashflow. One obvious one is your office supplier, as the market conditions are weak you should really try and push them for either cheaper space or better payment terms.