With regards to factoring your accounts receivable, it is important to know what constitutes a commercial invoice. The distinction here is that the factoring company has to be able to make an advance on a clear obligation due from an account debtor, or customer. So whether your company provides a product or service, the work has to be completed, accepted and the amount owed has to be verified as due and owing without set-offs or credits. No pro forma, or pre-billing, where your customer may allow an invoice to be generated before the work has been done. This is unacceptable for financing in terms of factoring. Additionally the customer must first be checked for their credit rating using an independent credit service.
This allows the factoring company to independently collect on the invoice if necessary to insure its payment. Hypothetically the factor will have a clear case if it should come to a collection action. How you set up your business relationship with your customers will help you to secure outside commercial financing.