Elimination of bad debt. A non-recourse factor will assume the risk of bad debt, thus eliminating this expense from the business' income statement. Factors handle much of the work associated with processing invoices, including posting invoices to a computer system, depositing checks, entering payments in the computer and producing regular reports. Offer credit terms to customers. The business can grow by making it easier for customers to buy from them.
Factoring is the only source of financing that grows with sales.
As sales increase, more money becomes immediately available. This allows the business to constantly be able to meet increasing demand. Take advantage of early payment discounts and volume discounts. Coupled with the ability to make volume purchase with the cash advances, they will likely save even more money. Stop offering early payment discounts to customers.