Factoring Is A Good Option For Many Borrowers

Factoring receivables is a good option for many borrowers.  A factor can fund a facility much faster than a traditional asset-based lender (especially banks).  Factors generally are less concerned about recent financial performance and will not subject a borrower to the same level of financial covenants.

While a traditional lender will require a whole host of documents as part of their due diligence, a factor’s document review is limited and is mostly focused on the receivables.

The above being said, a borrower will likely pay more for a factoring facility.  The higher costs can be worth it in many instances if the factoring facility gets you to your goals.

Please contact FinAdvisr if you need help getting financing!