This approach to financial management is an effective alternative to obtaining a loan and is particularly relevant in situations where borrowing is difficult for any reason.
The advantages of factoring are its speed (in practice, such agreements are made much faster than lending agreements) and the absence of the need to provide collateral.
Factoring can also be used if the company does not have a very good credit history. Factoring schemes are especially relevant for small and medium-sized businesses. Continue reading