Financing option

More industries use factoring to capitalize small businesses

creditworthiness of a company before entering into a contract.

  • Timing: Small businesses may use a factor intermittently for a couple of years until they’ve established a track record. Once they are creditworthy, they can then apply for unsecured money.
  • “We’re the minor leagues in the banking business, says Sheinker. “We’re the farm team. If they prove themselves with us, they get drafted and move up to the big boys.”

    For more information on factoring or finding a factor, check out the Commercial Finance Association Website at www.cfa.com.

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