Invoice factoring generally makes the most sense for growing B2B businesses with good — but often slow-paying — customers. The definition of "slow," of course, is relative to the business's point of view, but even standard net 30 payment terms can be problematic if the invoice is a big part of the company's near-term revenues. It can make or break a company's ability to take advantage of a new business opportunity, particularly if it does not have enough business history or collateral to secure a line of credit with a bank, or a decision must be made before a loan application process can be completed. That brings us to one of the benefits of using invoice factoring: The company's own credit matters less than that of its customers, who are, after all, the ones who will be paying the factor. A business might also turn to factoring so its employees in finance don't have to spend time on collections, which can be a frustrating and thankless activity.