The Facts of Factoring

Imagine your growing business just made a six-figure sale to a company across the country. The problem? The buyer has 60 days to pay, but your cash flow is limited, meaning you can’t afford the immediate fuel and payroll costs to ship the goods until they make payment. You’ve tried talking to the bank about pledging your receivables to obtain a loan or line of credit, but you lack necessary capital. Plus, you’d rather not take on more debt anyway. Enter accounts receivable factoring. A…