Why Factoring Benefits Business-to-Business Companies

Should My Business Be Taking Advantage of Factoring

If you own a Business-to-Business (“B2B”) company you may be asking yourself why Factoring benefits me. How do I know if it’s a viable solution for my business?  In order to answer these questions we have to ask a few more.

  1. Are you currently invoicing your customers with terms?
  2. Do you wait N30 – N90 for payment from outstanding invoices?
  3. Is your business subject to cash flow challenges, especially when it comes to seasonal fluctuations, supply-chain, payroll, expansion, purchase orders, and overhead?

If you answered yes to all or several of these questions, then factoring could be a solution for your businesses cash-flow.

How Does Factoring Work

Now that we have discussed how Factoring may be a working capital solution for you business, let’s discuss how Factoring works. The technical definition of Factoring is when a business sells their accounts receivable (“A/R”) invoices to a third party (“the factor”) at a discounted rate to provide the business with instant working capital.

What to Look For in a Factor

A Factor that has online applications and streamlined approval processes makes setting-up your account simple and easy-to-use.


You want a factor that you can have quick access to decision makers who are able to approve funding timely.


A working capital solution will relieve the burden of relying on customer invoices to cover payroll, equipment, new product lines, expansion, training, and overhead.


As you grow so should your financing options.

When looking for a reliable working capital solution Seacoast Business Funding provides custom financing solutions to meet your business needs. As part of a national bank, we provide a true long-term partnership that will help your business thrive.

Let’s work together, contact us today.