How does factoring differ from bank financing?
Factoring is faster and less complicated than bank financing. Factoring companies make decisions based primarily on the credit worthiness of your customers, while a bank’s credit decisions rely mainly on your company’s financial history, cash flow, and collateral. Our Factor funds quickly, often within days of receiving an application, when banks generally take weeks or months. In addition, when you factor your accounts receivable, your company incurs no debt, as there is no interest to pay or principal to repay. Factoring can also help companies that banks traditionally shy away from, such as start-ups, companies with tax liens, or even companies in bankruptcy.
