There is still a big job shortfall. Overall small companies have lost three million workers since the recession began, and there are many small to medium-sized businesses that are still facing challenging times due to the economy.

If you are still having problems meeting payroll or paying your bills, have you ever thought about doing factoring for your business? Factoring is not a loan - it is the purchase of financial assets from a factoring company, and it differs from traditional bank loans in that bank loans involve two parties, while factoring involves three parties.

Most banks base their decisions on a company's credit worthiness, whereas factoring is based on the value of the receivables. With invoice factoring, there are no minimums, no maximums, no long-term commitments and no lengthy application process. A factoring company can help get businesses back on track so they are current with payroll.

Primarily a factoring company is interested in three things:

1.) Do you know if your business is properly licensed and registered?
2.) Are your products and or services consistant and of good quality?
3.) Are your invoices accurate, creditworthy and verifiable?

Businesses are more confident with an upswing under their belts, but one way they can feel even more secure is to begin a solid invoice factoring program. How? Choose a reliable factoring company, then choose one or more invoices that are due in 30 to 90 days, and factor all of them, or choose just one for single invoice factoring. You will be really happy that you put this program into place.

Also you should know that a factoring company wants to also be in a first lien position on all receivables. Although factoring companies each operate with some differences including different benefits and costs, there are many reputable factors, and some charge more than others. It is also a good idea to check and see how much experience the factor or factoring company you choose has.

In case you are wondering you may want to comparison shop because there are some factors who charge for items besides the discount fee (the cost for the time the money is out) -- such as set-up fee, an application fee, a loan origination fee, administrative fee, or a monthly or annual maintenance fee. One more thing: check and see if there are any penalty fees.

ask if the factor provides reports on account activities, or if they offer credit services on your existing or new customers; It's important to find out if they charge for these services.

During an unstable economy like we have had over the last couple of years, many businesses are now successfully using factoring so just make sure that the factoring company is sound and secure. Chances are once you begin to use factoring in your business, you will find it such a useful tool that you will continue using factoring.