Finance - Getting Money
Factoring

Factoring

Factoring is a relatively expensive means of obtaining financing. You are paying for the cost of the capital, the extra risk including bad debt, and the paperwork factoring requires. If you can finance your business through other sources, particularly the more traditional ones, you will certainly save money.

However, factoring can be a cash bonanza to a growing business, especially one that cannot obtain the necessary capital through traditional borrowing.