Trade credit is the largest single category of short-term business financing. This is the way that most B2B sales are transacted and why accounts receivable financing exists. If all sales required full payment in cash, fewer sales would be made. Thus, to be competitive, retail businesses must accept plastic and swipe fees. Likewise, businesses that sell to other businesses must to be willing to bear the cost of offering credit.
Modern factoring is based on trade credit. It also the quickest and easiest type of business financing to qualify for. Once established, a factoring line of credit provides a reliable, hassle-free way to access some of the cash tied up in your receivables.
If you have any questions about factoring or wonder if your company qualifies, call us today at 541-484-7044.
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