When should businesses factor?

There are six reasons why companies factor their receivables:

1. They need money immediately to improve cash flow

2. The cost of capital is more than that of factoring

3. They do not want to create more debt by getting a loan or loans

4. They are not eligible for bank financing

5. They cannot wait for bank financing

6. They want to build their cash reserves

You do NOT have to sell all of your invoices when you factor with River Rock Financial. You decide which invoices, and how many, you need to sell in order to manage your cash flow needs.

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