Factoring can be a valuable financing tool for smaller, growing businesses. In the Invoice Factoring Essentials manual, we discuss when this tool should be used, how to select a factor, the terms and conditions that it imposes, the factoring process, and the differences between recourse and non-recourse factoring. We also look at factoring from the viewpoint of the factor, noting how it makes money, controls its risk, and deals with potential fraud situations.