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Factoring FAQ

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.