In the current economic climate many small to medium enterprises are struggling to grow as they are unable to secure the funding they require. During the recession banks tightened their lending criteria and are still unwilling to take any big risks. What does not help is when businesses have most of their assets tied up in unpaid invoices. Factoring is an alternative financial solution that many small businesses are turning to. Companies simply hand their outstanding invoices to finance companies who will release a large percentage of their funds whilst they chase up the full payment from the customer. Once the customer has paid their invoice the finance company will then release the rest of the funds minus a small fee for the service. Factoring services ensure that businesses always have the funds to pay their everyday running costs, staff wages and taxes. It prevents small businesses running into cash flow problems and helps them achieve growth over time.