If your business struggles to generate steady cash flow from operations, factoring is a possible solution. With factoring, a business sells the right to collect on customer invoices to a factoring company in exchange for an immediate payment. If you have slow-paying customers, factoring accelerates the collections process. But some companies abuse factoring and use it to commit fraud.  The basics There are two forms of invoice factoring. With recourse factoring, the business selling invoices agrees to repay the factor the advance it received (a percentage of the invoice’s face value, minus a fee) if a customer doesn’t pay the full amount. Non-recourse factoring is less common because it involves more risk for the factor. The business doesn’t have to repay the factor if a customer becomes insolvent during...