If anything, it will improve your relationship with your customers.  Since we will determine the creditworthiness of your customers, not only will you free yourself from making that determination, you might be able to extend open terms to customers to whom you otherwise might not have known were credit worthy.  Extending open terms instead of requiring only credit cards or COD allows your customers to write bigger and more favorable orders. Factoring is a standard practice in any industry where customers deal on open terms.  All big box retailers deal with factors on a daily basis and they have accounts payable departments specifically dedicated to dealing with inquires about payment on receivables.  For most transactions with big retailers, the process is as simple as having to change the "pay to" name with the retailers accounts payable departments and the buyers are usually not even aware of whether a customer is factored or not.