How does Invoice Factoring differ from bank loans?

The term invoice factoring refers to a certain type of financial agreement than helps smaller businesses manage their cash flow by selling their debt to a factoring company that will chase their outstanding payments for them.
How factoring works

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factoring companies- how to find them?

A good place to start when looking for factoring companies or invoice discounting companies is the Factors and Discounters Association which has lists of factoring companies in the UK and lots of helpful information.

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Factoring company- how to choose?

OK you have established that you need a factoring company- but how do you choose which company to use? There are the big brands such as HSBC and Lloyds TSB which offer factoring services but there are also many other smaller more specialised factoring companies.

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