Factoring is when you sell your invoices to an investor and get paid immediately, instead of waiting 30-60 days or longer. Home based businesses can use factors, just like the big guys do. You have to remember though, that factoring is for business to business transactions. It cannot be for jobs you do for private consumers.

Example: you have a catering business you run out of your own kitchen, with a helper or two. You cater a party for Mr. and Mrs. Johnson for their 25th wedding anniversary. You can't factor that job, because it is to an individual. But when you cater the Christmas party or the 4th of July picnic for Mr. and Mrs. Johnson