The debt factoring services that have arrived in the market have contributed substantially towards improving the liquidity of business enterprises. The factoring companies have saved many start ups and small and medium industries from ruin by solving their cash crises. All established companies usually extend credit to good customers hoping to get bigger and continued orders. The problem arises when these dues don’t get repaid in time. The factoring company takes over your sales invoices which represent what customers owe you in exchange for goods sold to them. The factor then undertakes to get the payments directly from the customers, on your behalf. This saves you the botheration of chasing your customers for pending payments. Another technique is that the factor analyzes your sales and trading account and gives you cash as a percentage of your sales transactions. This could be a one time request or a continuing arrangement. The Factor ultimately recovers the amount from the company’s customers. That means that you get cash immediately on presenting your sales invoices. This does wonders to your cash flows and helps you to become more competitive.