Discipline

Whether factoring your invoices or not, it is critical to be focused on the cash flows within a company. Incoming accounts receivable and outgoing accounts payable, growing the business is the same even without a factoring company. It takes discipline to keep from spending more than the invoices bring in. The discipline has to be there, all invoice factoring affords is the ability to accelerate the process. Without the discipline to hold back costs, create an efficient profitable business, and effectively increase revenues, accounts receivable financing will not help. But with good fiscal management, invoice factoring can be utilized to ramp up growth without having to raise equity or increase long term liabilities.