Many of our new clients ask this question when they begin to use our service. Establishing a credit line is a positive statement to make to your customers because not all companies qualify for credit lines. Accounts receivable financing is a finance method used by very large corporations worldwide, with the service being provided by the largest banks in the nation.

Previously, only corporations with one million dollars per month or more could qualify for the service. Factors simply would not bother with smaller companies or multiple invoices. Because this service was not available to smaller companies, your customers will see this as a positive ability to secure receivables financing, not as a problem with cash flow. Companies like Shell Oil, Georgia-Pacific, and IBM, factor millions of dollars per year. Certainly, we don't view these companies as having "problems." Receivables financing is most often used to expand and take on larger projects; not just for cash flow or payroll. With the advent of this newly available service to other companies, the perception is one of growth. Many companies already deal with Factors, and you may not always be aware of it. Often invoices directing payment to a P.O. Box is actually to a Factor. You would be surprised at how many of your customers may have already been exposed to Factoring!

Factoring is a valid form of financing and has been a part of the banking industry for hundreds of years and will be for many more!