According to the ADP National Employment Report ®,the estimated change of employment from November to December 2009 was revised by 23,000, from a decline of 84,000 to a decline of 61,000. The good news is that the January employment decline was the smallest since employment began falling in February of 2008. What this means is that small businesses are starting to get back on track.
There’s an increasing demand for business credit but a decline in the supply of banks that are loaning money. What’s more, as the small businesses sector becomes more healthy, helping to bail the economy out of the current recession, a number of small to mid-sized companies have started using invoice factoring as a means to stay afloat and grow.
Factoring accounts receivable, also known as simply factoring, is not as well known as the practice of bank loans, however, it has been in practice for more than 4,000 years. Factoring invoices is an excellent means of business finance because factoring is based on the asset of a company’s accounts receivable, with no debt incurred.
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