If the invoice takes longer to collect, that 2% can increase in time. 2% is not too bad as a lot of the companies that I knowof generally want 3% of each invoice. I only refer to factoring if it is something that I cannot do myself. I have a couple guys who work for me that came from factoring companies. They can tell you all the horror stories you ever want to hear. Of course, some companies need factoring which is why they are in business.
A line of credit would be much better for cash flow purposes than factoring. If you have any questions, give me a call regarding your company.
______________________________
Matthew Roberson
Vice President
Business Financing Officer
US Bank
2020 E. Financial Way, Suite 200
Glendora, CA 91741
626.914.7390 phone
626.236.9302 fax