Credit Lines Under a line agreement, the lender supplies a business with funds intended to fill temporary shortages in cash that are brought about by timing differences between outlays and collections. Typically used to finance inventories, receivables, project or contract related work. Factoring Factors actually buy your receivables and rely on their own credit and collection expertise. Essentially, your customers become their customers. Factoring is used by furms who are unable to obtain bank financing. The cost of financing is usually higher than other forms of S-T financing. Read Full Article on this PDF...
