As customers take longer to pay, what can a business owner do to protect their company and the employees that work for them?
Businesses that sell to other businesses on trade terms often become a source of working capital for their own customers. These trade terms can be N30 but can also go up to N60, N75 or even longer, as companies are taking longer to pay their invoices.
The concept is fairly simple: invoice factoring allows business owners to finance their invoices, or accounts receivable, quickly turning their open receivables into cash almost immediately. Business owners receive an immediate injection of cash based upon the strength of the pending invoice payments from their customers.