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To solve cash flow problems, a company has at least two options that they may want to take advantage of. These two options or alternatives include invoice factoring and invoice discounting. The decision that is made should be based on the longevity of the company and how well the company is performing. Factoring is recommended as the best option if the company is new and has few employees in their business operations. In this type of arrangement, the business will sell their invoices to a factor. The factor will often pay from 80 to 85% for the value of the invoices. The factor is also responsible for collecting the invoices from the company’s customers. On the other hand, invoice discounting is more beneficial for strong companies that have good credit and a reliable customer base. In invoice discounting, the company will continue to control the collection process for the invoices.