Saturday, December 30, 2006

Factoring Question 6

If banks tighten their credit facilities, does it make it harder for me to obtain factoring?

No. Factoring that is done through reputable, well capitalized factoring companies is not affected by bank policies towards small and medium sized businesses.

Factoring is not a loan and is not about getting credit. It is about the sale of an asset that you own – the receivables – to guarantee cash flow and obtain working capital.

© 2006 Sanjeev Aaron Williams & Cashwerks All Rights Reserved

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