How is the benefit of having my accounts receivable purchased better than taking out a loan at the bank?
A. A significant difference is that a loan at your bank is reflected on your balance sheet as debt, whereas having your accounts receivable purchased is a prudent use of your assets. In addition, while incurring debt at your bank requires repayment of the debt with cash, accounts receivable financing requires no repayment and no cash drain. Each successive week generates new receivables which we continue purchasing, thereby providing you with a reliable stream of cash.
