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One major hurdle facing virtually any growing business owner today is how to maintain and manage positive cash flow. One of the least understood options for increasing money flow is factoring. Operational costs including equipment, payroll, materials, and taxes can be met with this one choice alone. It's also a way to quickly fund expansion for a small business.

Akin to the credit card business, the factoring process differs in that transactions are exactly business to business. A business sells its accounts receivable to a factoring company rather than waiting for money from its customer. As a result, the money flow of the business gets better. The factor then collects the total amount receivable from the customer.

Thus the impact of accounts receivable factoring on profits can be seen readily by comparing the bottom line prior to factoring with the bottom line after factoring, which enables companies to give service to a 2nd customer.