Myths & Facts
Myth: Factoring is a loan
Fact: Factoring is a liquidity tool that allows clients to create working capital at their discretion
Myth: The criteria to gain access to working capital is ever-changing
Fact: Hennessey Capital uses consistent criteria to evaluate financing relationships, independent of external market conditions
Myth: Only a company’s accounts receivable can be leveraged to create additional cash flow
Fact: In addition to A/R, businesses can leverage inventory to increase cash flow
Myth: A business with an existing bank line can not benefit from non-traditional financing
Fact: In many cases clients use factoring to complement an existing bank line and increase working capital
Myth: Factoring and asset-based lines of credit limit flexibility
Fact: By creating immediate cash, these services enhance liquidity and opportunity for growth
Myth: Factoring is a restrictive financing option for a small business
Fact: Factoring includes the benefits of additional credit, collection and monitoring services which can assist companies in managing A/R
