Debt-Free Business Financing With No Loss of Ownership Or Control
There is a form of business financing that is debt-free, with no loss of ownership or control. It is very quick and still readily available. It is the only form of finance that grows as fast as invoices. There is no minimum time in business or collateral requirement. The client's personal or company credit is usually not important. Prior liens are usually not a problem, so long as they're disclosed up front . (Factors don't like surprises. A deal that could have worked will probably die if the factor's due diligence turns up undisclosed liens.) This form of finance is called factoring. Say your company (the client) provides a product or service to a customer, then issues an invoice for those goods or services. The customer frequently takes 30-90 days to pay the invoice. Rather than wait, the client can sell the invoice to a third party, called a factor. The factor will verify that the invoice is valid and t...