Factoring is based only on the accounts receivable. A client's ability to raise cash by factoring is based on the total accounts receivable, rather than on traditional measures of financial strength and stability.

Factoring provides continuous cash flow without the requirement of periodic payments or interim payoffs. Growing sales create the on-going ability to obtain cash, without the business of having to deal with the renewal of loans or worrying about maturity dates.

Factoring gives a business increased access to cash as sales and receivables increase. There is no ceiling beyond which the factor must stop providing cash. Quite simply, the more sales a business makes, the more cash it can draw.

Factoring offers a dependable, continuous source of cash without the necessity of making separate loan applications.

Factoring avoids the necessity of obtaining funds from venture capitalists, who receive an interest in the business and generally have a say in how the business should be run.

Factoring saves the business owner precious time waiting for a loan board to grant or deny his or her loan. Loan boards' decisions are influenced by many considerations, the outcome is often unpredictable. With factoring, periodic delays and negotiations are eliminated, allowing the business owner time to do what he or she does best-- run their business.