Pros and Cons of Factoring

Managing cash flow is a challenging task for many owners of small-to-medium-sized businesses. Invoice factoring is a financing method where a business sells its accounts receivable to a third party at a discount in exchange for immediate cash. While this can provide quick access to funds, it’s essential to weigh factoring invoices’ pros and cons before deciding whether it’s the right choice for your business.

Side view of an invoice displayed on a laptop screen