Is accounts receivable factoring a widely accepted practice?
In today’s world, many small- to medium-sized businesses are finding it increasingly difficult to obtain growth capital from commercial banks. As a result, accounts receivable factoring has become more popular than ever. Some larger retailers now even include a column in their purchase orders indicating whether the invoice is to be funded or not. But not until recently have businesses with annual sales under $20 million been able to obtain funding rates that will allow them to compete with those larger companies.
