Factoring is a simple process where a factoring company buys your invoices for immediate cash, then performs the collection of those invoices. The factoring company pays you up front before the invoices are paid by your customers, which gives you immediate cash flow. This frees your business from the 30, 60, or 90-day terms on your invoices.
Accounts receivable factoring is a very accessible business funding option. It's an ideal alternative for small businesses that need financing but aren't ready for bank financing.
Virtually any commercial business that provides goods or services for another business (B2B) qualifies for invoice factoring. Some industries that benefit particularly well from working with Illinois factoring companies include medical groups, staffing agencies, government contractors, and manufacturers or distributors.