Factoring pursues the revenue of a company by guaranteeing receivables that have a fixed term and provides the companies with a planned and constant cash flow by transforming receivables to cash with cash management. It quickens the developing potential of the company. 
Companies transferring the customer risk to the factor can widen their domestic and international markets. They find the opportunity of planning their fund flow beforehand due to that flexible financing they may use as a resource whenever they want. Furthermore, factoring (not being a kind of credit) creates a movement just in the active entries of the balance sheet. When the receivables are at decrease, it makes the balance sheet more liquid.

The company's credit worthiness increases. Factoring is much more flexible and also faster than bank credit in funding.