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 firms who are unable to obtain bank financing. The cost of financing is usually higher than other forms of S-T financing. Term Loans Used to finance your permanent working capital, new equipment, buildings, expansion, refinancing, and acquisitions.
Commercial banks are the major source of funding.
The term of the loan is based on the useful life of the assets being financed or collaterized. Your projected profitablity and cash flow are two key factors lenders consider when making term loans. Equipment and Real Estate Loans Loans are fully secured by the equipment being purchsaed. Lenders make long term loans secured by commercial and industrial real estate. Repayment terms range from 10 to 20 years.