How is invoice factoring different than a loan from a bank?
Factoring is the purchase of a company’s accounts receivable as opposed to a loan that creates debt on the balance sheet. You are simply speeding up your cash flow with invoice factoring by utilizing an asset your company already had. Factoring focuses on the creditworthiness of your customers while banks focus on your company’s financial history and cash flow. Accounts receivable funding is not a loan, therefore provides you with less debt on your company’s balance sheet. Paragon Financial can make a quick funding decision, while banks may take weekseven monthsto approve a loan.
Factoring is the purchase of a company’s accounts receivable as opposed to a loan that creates debt on the balance sheet. Factoring focuses on the creditworthiness of your customers while banks focus on your company’s financial history and cash flow. Accounts receivable funding is not a loan, therefore provides you with less debt on your company’s balance sheet. Infusion Funding LLC will make a quick funding decision, while banks may take weeks—even months—to approve a loan.
