Payroll is Friday and No Checks in the Mail?
Worldwide, factoring is utilized as a primary source of business finance by millions of small business entrepreneurs and though it is called upon to provide working capital solutions in many problem areas, none is more common than problems of cash flow and payroll. For many small businesses, offering terms of payment (30 days or longer) to customers is a common practice and necessary to secure orders and contracts. It is also common for such customers to “extend” sending checks to 45 days, 60 days or even longer causing serious cash shortages when trying to meet a weekly or bi-weekly payroll. There is no other source of financing more commonly used to meet this challenge than factoring.