When you borrow…
  • Typically a lender will secure collateral equal to a minimum of three times the loan amount
  • Your flexibility is restricted
  • You cannot secure additional funds without renegotiating the loan
  • You must meet monthly payment obligations
  • You incur additional debt further leveraging your business
When you factor…
  • You don’t borrow money
  • There are no monthly payments
  • Mailing expenses and costs associated with follow-up management on accounts are eliminated