Personal Assets Not Required

A factoring company will not require you to pledge the equity in your home in order to secure invoice financing. Accounts receivable factoring is designed to consider the creditworthiness of the account debtor or customer as the deciding factor on whether or not to fund an invoice. Banks use the equity in a piece of real estate to bolster the marginal financial strength of a borrower. Invoice factoring by its very nature does not need to rely on secondary methods of repayment. For this reason, factoring can be a very attractive alternative for gaining access to capital. By keeping your personal assets separate from your business liabilities a factoring company can help the business grow.