Q: What is the cost of factoring?
A:Factoring "costs" average around 2.5% give or take. Compare this to PayPal or accepting a credit card usually around 3%
Q: Does factoring create debt?
A: No. Factoring generally structured as a sale not a loan thus creates no debt
Q: Is factoring a new thing?
A: No. factoring in the US dates back to colonial times and has been documented as far back as the Roman Empire.
Q: Is factoring expensive?
A: No. If factoring costs are not offset by increased profits, opportunity or otherwise "free" by nature of the cost/benefit, you probably shouldn't use factoring
Q: Is factoring a loan?
A: No. Factoring is not a loan. factoring is the sale of the value that you have in your accounts receivable.
Q: Who has used factoring?
A: That's a big question. Well many industries and business types have used factoring for many years. Doctors, hospitals and other medical facilities use factoring, Transpiration, telecommunication staffing & manufacturing use factoring. Construction companies, contractors & people in the oil patch use factoring. If you do business with another business you may be able to use factoring as well.