Company credit rating not important. A company does not need to be creditworthy, profitable or in business for 3 years to meet credit criteria, unlike criteria required by banks or other commercial lenders. If you have creditworthy customers , you can get financed through a factor. Take advantage of early payment discounts. Factoring may allow you to take advantage of early payment terms offered by suppliers.
Factoring helps build credit.
This improves your chances of getting credit terms from suppliers as well as future conventional financing 9. You don't incur any debt. Since factoring is not a loan you do not incur any debt with this process. Your balance sheet looks good, making it easier for you to obtain other types of conventional financing or ultimately sell your company. The factor provides you with detailed cash management reports enabling you to better run your business and manage your cash flow.