How is accounts receivable funding or factoring different than accounts receivable financing from a bank?
When making a funding decision, factors focus on the creditworthiness of your customers, while banks focus on your company’s financial history and cash flow. Plus, since accounts receivable factoring is not a loan, there is no debt on your company’s balance sheet. Best of all, factors will make a quick funding decision, while banks may take weeks – even months – to approve a loan.
