Factoring is a way to take the accounts receivables you have in your business and turn them into instant cash that you can use immediately when your cash flow is a little slow.  The times when payroll needs to be made and bills have to be paid, but you have not been able to collect on those receivables can create havoc with company owners.  They have to find ways to meet these obligations and factoring helps them to.  They take the accounts receivable and you get your money immediately.  For a short-term solution for money, factoring is an excellent course of help to businesses.