Use It When You Need It

A factoring company can be invaluable to any start-up business, especially if it offers clients a “use it as you need it” funding option.  With this option each invoice purchase is a separate transaction and does not form part of a portfolio lending approach. The transaction is modeled as a buy-sell transaction. Typically a factoring company undertakes a due diligence that typically takes one to two business days. Once completed the client is at liberty to offer invoices for purchase. Upon receipt of invoices, the factoring checks the credit of the debtor named on the invoice and makes sure that the sale represented has been satisfactorily completed.  #smallbiz #smallbusiness