How does factoring differ from bank funding?
How does factoring differ from bank funding? With traditional bank financing, rates tend to be a little lower, however the criteria and restrictions are much greater. Banks will typically offer a fixed line of credit (LOC) that becomes a liability on your profit and loss statement and is tied to your collateral. This LOC often becomes difficult for companies to repay. Factoring grows as you grow. You’re advanced a percentage of your invoices up-front with no restrictions on growth and far fewer constraints. Factoring does not become a liability on your books and companies can stop factoring anytime.
Contact Thunder Funding for more information.