In the experience of many small businesses over the years, one thing is certain - no matter what kind of business you begin, it is going to require money from somewhere. Start-ups and small businesses have typically had difficulty increasing capital through outside sources and, for new organizations, the chances of getting a loan from the bank is close to zero. Most banks today won't even consider lines of credit or loans for organizations that have been in business less than 3-5 decades.
Well, there are ways for organizations to avoid financing issues and find alternatives for obtaining business financing. One method is receivables financing, also known as receivables factoring, invoice factoring, invoice discounting or debtor financing.