Factoring Climate

It appears that all the economic clouds are gathering to form a perfect storm for invoice factoring. The previous down cycles still had banks offering commercial financing to marginal borrowers. Marginal meaning that the borrower might not be quite ready to secure funding, but the banks were willing to make the loan happen. Not today. Today the name of the game is protecting assets first and foremost. With this in mind, a factoring company can play an important part in revitalizing the troubled economy. Because accounts receivable factoring relies on the creditworthiness of the customer rather than the financial condition of the borrower, factoring can be the best short term solution to accessing badly needed working capital. And invoice factoring can be obtained within days with little paperwork.