Understanding the Benefits of Factoring

Every business requires a certain amount of cash flow and accessible funds for success. However, there may be times when you are looking to expand or are unable to speed up your cash flow quickly enough to meet your needs. Instead of turning to a bank for financing, consider factoring (also known as accounts receivable financing) as an alternative financing option. At Summit Business Financing, our factoring company offers this service to clients nationwide.

The advantages of factoring include:

  • Larger amounts acquired
  • Less time to funding
  • Not a loan/debt
  • Less costly than equity
  • Expands quickly
  • The disadvantages of factoring include:

  • Shrinks if business downsizes
  • May come at a higher cost in the long-run
  • Sends notifications to customers

  • Are you having trouble deciding and would like to speak with one of the knowledgeable team members at our financing company about your options? Contact us now at (201) 963-9185 to get started!