There are a lot of misconceptions about Factoring accounts receivable. The two biggest myths are It Costs Too Much and Lack of Flexibility. That may have been true in "the old days" but nothing could be further from the truth today. … [Read more...]
Understanding the FEES Principal to Closing Factoring Deals!
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One of the most important things I learned early on in my consulting career is in order to generate revenue, commissions, fees you have to be able to follow the "FEES" Principal on the road to closing deals. … [Read more...]
Is Factoring a “Loan” Like a Bank?
Factoring is not a loan and there are many differences between getting a bank loan and utilizing factoring. Banks lend money. Most of the time they require some form of collateral which can be challenging for small or new companies. Additionally, banks are limited (by regulation) to how much money they can advance a business owner (oftentimes between 30% - 50%). Lastly, bank "loans" show as a debt on the business owners books. Factoring is not lending. It is the purchase of a receivable at a discount. There are no collateral requirements, no "debt" and Factors are not limited in the amount of money they can advance (usually up to 90% depending on the payer). … [Read more...]