Businesses in all different industries are being affected by the ongoing shut-downs. Not only has business slowed for many, but customers are taking longer to pay. Whether you are a factoring veteran or you are new to invoice factoring, you’ve discovered how it can solve your cash flow issues.
However, an advance on your receivables will only benefit your cash flow and overall business if you get to keep that cash. Unless you are using non-recourse factoring, you are at risk of having to pay the advance back to the factoring company should your customer have financial issues and not pay. Increasingly late payments are one sign of a possible impending bankruptcy. Read more