The short answer is NO!
Factoring, an increasingly common practice
Businesses of all shapes and sizes use invoice factoring for several reasons. New businesses use factoring because banks won’t lend to them. Fast-growing companies or those moving into new markets or territories use factoring to get cash quickly without having to wait on a loan.
Companies in manufacturing, freight, and transportation use factoring because it is the preferred form of financing for their industry. Though it is true that some businesses going through a rough patch may use factoring, using factoring does not necessarily mean a business is in trouble.
Factoring, a simple solution for your company's growth
Growing a business is a challenging task and is bound to have its ups and downs. As your company expands, new challenges arise, such as increased inventory and payroll costs.
To sustain your business growth, you often need to spend money to make it. This is why there is no shame in utilizing financing options, like factoring, to give you the extra support you need to navigate your growth challenges.
