From Stressed to Success: Invoice Financing Will Transform Your Business

Invoice financingvs. invoice factoring tab backing and tab factoring are two ways a business can induce cash from overdue checks. tab backing is analogous to a traditional secured loan in that it has set payment terms and interest charges accumulate on outstanding balances, but it uses one or further checks as collateral for the loan. In tab factoring, the cash the business receives is n't in the form of a loan. Rather, a factoring company, AKA a factor, actually " buys " the tab and assumes responsibility for its collection.