The "F" Word: Why Factoring Gets a Bad Rap

 

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Many companies still consider factoring to be the last-gasp effort by a business in trouble. In the past, factoring was used to finance struggling businesses. Today it is used by startups and for growth capital, especially with banking regulations becoming more stringent every day. Companies now use factoring as a healthy cash flow option to increase revenues.

There are still some negative connotations tied to factoring for two reasons: cost and customer perception. 

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