From replacing equipment to paying off bills, making money as a small business requires a lot of money—but you may not always have the cash flow to handle it all. Invoice factoring, also known as accounts receivable factoring, gives small businesses the chance to quickly access working capital by turning unpaid customer invoices into cash.
In this post, we explore how invoice factoring works, what it costs, its pros and cons, and more. Read on for a thorough explanation of invoice factoring, or use the links below to skip to the section that best answers your query.
- What is invoice factoring?
- How does invoice factoring work?
- Invoice factoring example
- How much does invoice factoring cost?
- Is invoice factoring a loan?
- Pros of invoice factoring
- Cons of invoice factoring
- Invoice factoring vs. line of credit
- Is invoice factoring better than a loan?
- Invoice financing vs. invoice factoring: What’s the difference?
- More financing options for small businesses