Businesses turned to nonbank facilities or finance companies to obtain financing. Factors, such as Access Capital, servicing the apparel manufacturing industry, showed gains in a quiet economic cycle. This article tells how difficult it was to get a loan or extended line of credit from the bank because of the credit crunch. Firms turned to finance companies, factors, and other asset-based lenders for working capital to grow their businesses. Small businesses, which are often turned down by banks, can look to non-traditional factors for immediate capital.
Factors can help businesses speed up their cash flow and turn their receivables into cash.
Factoring does not increase overhead. Businesses are able to increase sales, deliver the goods, and pull in the money right away through factoring, resulting in fast growth for the company. Instead of having to wait 30 days or more for invoices to be paid, a factor can purchase a single invoice from a business and provide immediate capital against it. This coverage on factoring was filmed by CNBC on-site and was aired nationally. CNBC conducted interviews with Miles M. Stuchin, the president of Access Capital, and two of Access Capital's clients.