Yes, small businesses can benefit greatly from the use of invoice factoring.
A steady cash flow is essential for the survival of any small business and invoice factoring provides companies with the cash injections they need. Invoice factoring also takes over the credit collection process, which gives small businesses more time to focus on other things like growing the company.
Financing from banks, be it overdrafts or loans, demand many requirements, such as established trading records and high credit scores. Debt factoring doesn’t focus on your personal credit score but rather the credit history of your customers, making it much easier for small businesses to secure financing.