It is simple to see why some companies give their customers the option to pay off their invoices over 30-60 days or more, as it can give them an edge over their rivals and possibly make a prospective customer to look at them more favourably.

However, when it creates a large interval between the work being completed and the payment being received, it can create difficulties with managing cash flow- which can effect the daily operations of a business. This is when using receivable factoring can help.

The beauty of using receivable factoring comes in its simplicity. These services purchase the invoice from you at a discounted rate from the actual value, and you are able to receive funds quickly- which is one of its’ main advantages.

Receivable factoring services can ensure liquidity, even during difficult times, and you are also saved the task of chasing up any of the unpaid invoices with customers, as the company will do this for you.

So, if you face problems with cash flow and working capital, opting for receivable factoring is the best solution.