The main advantage is that it offers an immediate boost to cash flow, cash is released to the business as soon as invoices are raised.
If you choose non recourse factoring you will be protected from bad debts.
Factoring helps cash flow planning, by providing greater certainty about when funds will be received.
Some businesses see factoring as a cost effective way of outsourcing the sales ledger function, freeing up valuable time to concentrate on other matters.
Pricing is competitive as there are many factoring businesses in the market.
Factoring companies can provide a great deal of information about customers, such as credit ratings and previous payment records.
Factoring companies can be an extremely useful resource especially at a time of growth.
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