There are many advantages when it comes to factoring; you get your money fast without the credit risks and you also decrease your administration costs.
Factoring is a type of service where you sell your invoices to a third party company. They then pay you a certain percentage of the original amount within a few days. When the invoice is sold the debt is theirs to collect which means you avoid all credit risks and follow up procedures like debt collection.
There are always advantages of combining services. If you use factoring you may also benefit from services like invoicing service, debt collection or credit checks.
What to avoid
There are many traps when it comes to factoring. Make sure you get your money within the specified time frame and also that the customer receives a professional support and care.