AR Cash Flow discuss how factoring can be the only viable option for small businesses. Full service factoring where the financier assesses the client’s asset position on a daily basis may be the only way to finance a growing business.
Without pointing out the obvious liquidity problems in the financial markets, small and growing businesses are now more likely to be declined by banks for overdraft type facilities.
Factoring providers can cure this working capital shortfall for growing businesses by bringing forward accounts payable and effectively turning them into cash. Full service factoring solutions mean that the wheels of the economy can keep on turning also when the banks have turned off the tap.