After the post on invoice factoring, many readers wanted to know if they should hire an invoice factoring company. As with many other questions, it depends.

Do you need to hire an invoice factoring company?

• You have poor cash flow.
• You spend a lot of time on invoice processing.
• You waste time in chasing unpaid invoices.
• You frequently run into clients who are slow to pay -- or who don't pay at all.
• Your clients are reluctant to pay deposits, but you need cash in hand to buy supplies, hire subcontractors or pay for other necessities (like your rent).
• You feel stressed out when you have to wait for an invoice to be paid.
• You can see opportunities to make more money by investing the payment now, rather than waiting.
  

An invoice factoring company may charge a 20% fee (or more or less), but, depending on your unique circumstances, you may find that a bargain.