Factoring Account Receivables
vs Other financing alternatives
| FINANCING SOURCE |
FACTORING |
BANK LOAN |
LEASING |
PRIVATE INVESTOR |
VENTURE CAPITAL |
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| Simple Application |
YES |
NO or unlikely |
NO |
MAYBE |
NO |
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| Requires Personal Guarantees |
NO, using non-recourse strategy |
Yes |
MAYBE |
MAYBE |
NO |
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| Days to funding |
1 to 2 |
30 to 90 |
15 to 30 |
15 to 30 |
90 to 180 |
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| Approval based on clients credit |
NO |
YES |
YES |
YES |
YES |
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| Funding tied to sales |
YES |
NO |
NO |
NO |
NO |
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| Give up equity |
NO |
MAYBE |
NO |
YES |
YES |
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| Take on debt |
NO |
YES |
YES |
MAYBE |
NO |
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| Limited to asset value |
NO |
YES |
YES |
MAYBE |
MAYBE |
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| Requires track record |
NO |
YES |
YES |
MAYBE |
MAYBE |
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| Requires profitability |
NO |
YES |
YES |
MAYBE |
MAYBE |
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| Ongoing reporting and monitoring |
NO |
YES, accounting, etc. |
YES, insurance |
YES, accounting |
YES, Board fees, etc. |
Cash Flow Calculator shows you the benefits with your numbers. You put in your numbers and see the profit you will have with factoring your account receivables
