Borrowing for Your Small Business
- How Much Should You Borrow?
- Preparation is Key
- Secured Loans / Collateral
- What the Lender Wants to Know
- After Your Loan Request Is Approved
- Unsecured Loans
- Tapping the Equity in Your Home
- Retirement Account Loans
- Life Insurance Loans
- Small Business Administration Loans
- Factoring Receivables
Factoring Receivables
A factor is a finance company or bank that buys customer receivables from a business—for a fee, of course—and then collects the balance due directly from the customers. Selling (or factoring) your customer receivables may result in a receipt of cash sooner than normal in the regular course of business. You may sell receivables either with or without recourse. If you sell a receivable without recourse, the purchaser assumes the risk and absorbs the credit loss if a customer defaults on payment. On the other hand, if you sell a receivable with recourse, you guarantee payment to the purchaser of the receivables if the customer does not pay.
Share Article:
Investment and insurance products and services are offered through Osaic Institutions, INC. Member FINRA/SIPC. TMB Financial Solutions is a trade name of The Milford Bank. Osaic and The Milford Bank are not affiliated.
| NOT A DEPOSIT | NOT FDIC INSURED | NOT GUARANTEED BY THE BANK |
| NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY | MAY GO DOWN IN VALUE | |
