What Is Invoice Factoring And How Does It Work?

Most businesses have an invoice policy agreement with payment terms ranging from 30 to 90 days. That means if you send your client an invoice today, you’re likely to receive that money at least a month later, if not longer. With these payment cycles, most businesses run out of cash, which can be challenging to deal with necessary expenses like utility, inventory, and payroll, affecting its growth. This is where invoice factoring for small businesses comes in.