From Factoring to Accounts Receivable Line of Credit.
Funded a small wholesale Company, taking out an Accounts Receivable factor in the process. The new line of credit allowed much greater freedom in purchasing and a better system for financing the growth which was being stagnated by the cost of money. Savings included in the additional working capital were an impressive 85% from the year prior.
Factoring is an Addictive Business Habit.
Perhaps factoring is the easiest working capital available today, however, this form of financing is very difficult to take out or eliminate. After all, you are simply borrowing your own dollars, these monies simply arrive faster then the normal course of collections and at a staggering cost. Used as a stop gap, or last resort is all this firm would ever recommend.
