The current economic downturn has left a number of companies in financial trouble. For some, revenue fell below costs, forcing cutbacks. For others, the cash flow has suffered because customers were paying a little bit, starting a chain reaction of late payments to suppliers, missed payroll, among other problems delayed orders. One thing the current economic situation has allowed small business owners - is a lot of opportunities to have financial problems.

Many small businesses that have experienced financial problems could be helped with the right type of business financing. The problem is that companies that have financial problems usually do not have access to business financing. Financial institutions are very conservative and do not lend money to companies that have solid collateral, financial statements and impeccable track record of profitability. This excludes most small businesses and almost all companies are in financial difficulties. It is the common trap of 22 - where companies that could receive funding have a way to access it.

It ', however, the solution corporate finance, which is gaining popularity with companies in trouble - it's called invoice factoring. Invoice factoring solves a common problem for small business - cash flow problems created by slow paying customers. It solves this problem with a financial intermediary - factoring companies - which the advance payment of your bills for you and then expect to be paid by the customer. In this way your company with the liquidity they need to be able to meet its obligations on time, without worrying about slow payments.

Factoring financing can have a major limitation if - can help companies with liquidity problems that are created by slow paying customers. It can be very helpful to companies that have financial problems - such as low sales.

One of the advantages of financing factoring is that it is easier to qualify for most conventional financing solutions. In general, the main requirement is that your customers must have a good credit rating business. This is important because your bill is the safety of the transaction. In addition, your company will be free of legal and tax issues.

Another important benefit of invoice factoring is that it does not usually a fixed limit - as a loan or an overdraft. The factoring business is usually dynamically linked to your income and grow your business grows - assuming that you work with clients strong.