Banking

Accounts Receivable Factoring On The Rise

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Executive Summary

Factoring is not a loan, but rather it's the purchase of financial assets, also known as receivables, from a factoring company. Factoring is different from traditional bank funding or loans because bank loans involve two parties, while factoring involves three. Factoring companies base their decision on the value of the company's receivables, while banks base their decision on a company's credit worthiness. Invoice factoring offers attractive features such as no minimums, or maximums, no long-term commitments and no lengthy applications. It is fairly simple, and the decision usually takes less than 24 to 48 hrs.

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