August 2006 - Small Business News

Factoring: Small Businesses are Missing Out

As a small business owner, you know that maintaining a good cashflow is a vital part of keeping your business going. Yet a surprising number of small businesses do not know about a quick and low cost way to help maintain a good cashflow.

A new survey of over 200 small business owners on BizHelp24 shows that almost half (44.7%) do not know what factoring or invoice discounting are. The survey also showed that of the businesses that knew what invoice finance was; almost half (25%) had decided it was worth using.

Factoring and invoice discounting mean you can get (up to 90%) finance from your outstanding invoices straight away, rather than waiting for the payment date. This also helps if you are suffering from slow paying customers.

Both services are especially useful for small and growing businesses, as these are the most likely to have stretched cashflow.

Find out more information on Factoring and Invoice Discounting here.