Some business owners confuse the role of the factoring company. They might think that invoice factoring is just a way to collect on old invoices. A factoring company is not going to help getting old problem invoices paid. Payment collections is a service, AR factoring is a finance transaction. Companies that specialize in collecting debt from customers can easily be found in directories. All they do is collect, they do not make advances ahead of the actual collection.
Keep in mind, a factoring company only will make an advance on creditworthy invoices – ones that are unlikely to require collections. But once working with an account receivable finance company, the staff will assist in keeping the accounts current. Having done this professionally for many years they can alleviate the headache of making calls to customers for the purposes of making sure payments are current. So working with a factoring company can prove helpful in the long run, beyond the funding.