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