Ozarks Capital Funding

When you go to the bank for a short term line of credit, chances are you’ll have to pledge some personal assets or at the minimum, offer a personal guarantee.  Such is not the case with invoice factoring.

When you enter into a factoring arrangement, the funding source needs to make sure that the receivables are unencumbered.  This means that no one else can have a lien on your accounts receivable.   Factoring companies must have a first position on your A/R because that is usually the only collateral they will have.