What is the advantage of Straight Collection vs. Factoring?

Each has its own merit, time, and place. Factoring is a short-term solution that brings Cash faster but does not really realize collection improvement and may stop any day when your financial coverage starts to be challenged by factoring companies. In addition, corporate companies are very restrictive with factoring either from an internal standpoint or simply due to GAAP principals. True collection brings cash, perhaps not as quickly but constantly. It improves collection cycle, and helps rehabilitate, strengthen, and better develop consistency with your customers Accounting Department in order to further a smooth, continuous relationship. It shows the market that you can continuously, slowly but surely, generate Cash without using harsh financial methods. For the same value, in general, rates are pretty close from one option to another. However in the end, collection is easier on your customers, more reliable, and a more tailored solution with steady results. ... more