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How is Factoring different from a Bank lending Facility?

April 26, 2017Bank different facility factoring lending

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How is Factoring different from a Bank lending Facility?

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A Factoring company undertakes a transaction based on the quality of the receivables unlike a bank which takes credit decisions based on a company’s financial history, cash flow and collateral. Empirically, factoring companies are able to turn around a funding proposal within days as compared with weeks for banks in general.