kind of credit do I need to be eligible for factoring
In many cases, even companies with
less than stellar credit can qualify for factoring.
With factoring, clients are approved in large part
based on their customer or debtor's ability to pay.
In other words, the factoring company is not just
looking for them to be qualified enough to pay those
invoices, rather they need them to be qualified enough
that they're not going to go out of business tomorrow
and stop working on the project so the factor doesn't
get paid by the customer. That's it.
Other than that, factors look at the debtor's
qualifications and usually that's exactly what small
They need someone to take over those invoices
so they can get paid and somebody else can wait for