If you think that Invoice Factoring is like taking a loan, you should take a step back and think again. Invoice Factoring is not a loan. It’s a simple process to get the financing done against your uncleared invoices. You give the factoring company all your uncleared invoices against which they give you the 70-90% of the payment. Then the financing firm chases all your clients to get clearance from them.
In a nutshell, the money that you get from the process of Invoice Factoring is the money that you have already earned. That is what makes it very different from a loan. Read on to find out more about Invoice Factoring.