Factoring is primarily worth the cost for two groups of businesses. First, businesses that need to receive cash quickly from their invoices to buy inventory or materials in bulk. Second, though much less common, businesses that can’t collect payments from their customers regularly. Businesses in need of long-term financing won’t find factoring as a viable option.  Keep in mind that this is a very short-term benefit type of financing. Ari Brown, Principal at ClearThink Capital warns of this point, saying, “Factoring tends to have a limited period of benefit for companies.  While they do accelerate working capital receipt, after the initial receivable collection period expires, it provides little benefit.” If you’re searching for more long-term financing, you may want to consider other business loan options.