Invoice factoring is one of the financial tools that businesses can use in order to boost their income. Factoring also refers to cash flow finance, debtor finance or invoice discounting. The economic downturn has greatly impacted on the cash flow of a majority of the small as well as medium size enterprises effectively hampering the business processes. It is in such situations that factoring comes in with the aim of improving cash flow and eventually making the companies to be financially strong. During factoring, companies will sell off their account receivables to factors in order to get instant cash that they inject into the business to promote smooth operation. The factoring option is particularly ideal for those businesses that are in dire need of capital solutions yet they do not have a good credit history. This is because it is not only flexible but also reliable and a very convenient solution for funding for medium and small companies. Companies that are run on the basis of account receivables often find factoring to be quite advantageous because it eliminates problems associated with lengthy an unpaid invoices. Companies that can benefit from this service to develop their cash flow include distributors, manufacturers as well as wholesalers. Even then, the factoring companies usually levy a charge that is based on the client's credit risk. Invoice finance comes with one main advantage that is the ease with which it can be accessed when compared to the conventional financing methods. Moreover, the size of your business or even price of the invoices does not usually matter. In fact, businesses can easily qualify for invoice factoring compared to bank loans that may take a bit of scrutiny. Even then, in invoice factoring you will need to ensure that you do not have any tax or legal encumbrances. Small and medium businesses are usually advised to consider invoice factoring only when they need quick access to finances by allowing them to untie their monies thereby allowing them to do away with worry that comes as a result of the money being tied up. The other advantage of invoice factoring is that businesses are usually excused from the collection even as the concern of non paying customers is eliminated because it is the factoring company that takes the responsibility over the accounts that are factored. Ultimately, you need to take time to identify the ideal factoring company to work with. This is not usually an easy mandate hence you can benefit from the expert advice of factoring brokers like the Factoring Solutions. This factoring specialist will help you to look into a number of factors before approaching factoring companies. Some of the major factors that the company will help you examine include the quality of service that the company offers as well as the manner in which the company operates. Thus, by consulting the Factoring Solutions experts you can be sure to come up with only the best solution. In general, while factoring is a handy solution for many businesses it is important to have adequate information before settling for a particular factoring company.