It is commonly believed that it is very expensive to use factoring to fund a business. Actually, using factoring to grow a business is less costly than other ways, such as giving away equity or passing up a sales opportunity. Factoring is competitive and affordable, with fast approval time as well. Unlike bank loans, factoring advances a set percentage of your invoice immediately with the balance, less the factoring fee, paid when customers pay their invoice. The factoring fee is usually based on how quickly the invoice is paid and usually range between 2-3 percent of an invoice amount. The benefit of receiving cash flow quickly usually outweighs the small factoring fee. Lastly, factoring companies usually provide additional services, including accounts-receivable management and credit analysis.