6. Factoring: Through factoring businesses can access financing - TopicsExpress



          

6. Factoring: Through factoring businesses can access financing through borrowing against their accounts receivables. (+) Helpful for businesses in a period of growth whereas it may seem risky for a traditional bank to lend, for businesses with limited credit history, businesses in volatile industries (e.g. garments), or businesses with few but quality clients (e.g. large retailers). (-) A business owner concedes control over their accounts receivables; obligated to pay factor advances first upon collection of A/Rs, any service fees and interest relating to the factor advances
Posted on: Mon, 26 May 2014 15:50:26 +0000

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