One of the many myths surrounding the factoring industry is that factoring is simply too expensive to be considered a viable commercial financing option for the average small business. The biggest mistake with this thinking is that more attention is paid to calculating a factoring “interest rate” rather than answering the simple question, “Will factoring work?”
In the post-financial-crisis world in which we now live, most business owners and entrepreneurs view commercial financing in a completely different light than they did before. With traditional bank loans getting harder to obtain, many owners have had to look “outside the box” for the capital they need to sustain and grow their firms.
Many business owners anxiously wait by their mailbox each day to find out how they can conduct that day’s business. If much-anticipated checks arrive, that’s great—they can pay suppliers, meet payroll and tax obligations and perhaps take advantage of growth opportunities. If they don’t arrive, it may mean another sleepless night, wondering when all those checks that are “in the mail” will actually materialize.
One of the many myths surrounding the factoring industry is that factoring is simply too expensive to be considered a viable commercial financing option for the average small business. The biggest mistake with this thinking is that more attention is paid to calculating a factoring “interest rate” rather than answering the simple question, “Will factoring work?”
In the post-financial-crisis world in which we now live, most business owners and entrepreneurs view commercial financing in a completely different light than they did before. With traditional bank loans getting harder to obtain, many owners have had to look “outside the box” for the capital they need to sustain and grow their firms.
