As a business owner, or advisor, it is important to consider various alternatives and oftentimes the most obvious path is the one pursued. Many times when a company is in need of cash flow the immediate thought is to pursue a credit line from a Bank or other financial institution. The first impression is to “get a loan” and use Accounts Receivable as collateral. This may be a possible solution; however, there may be an easier way and that is to “obtain factoring”. Let’s look at the reasons it may be easier and more efficient.
