BizSugar.com › Finance › Credit crunch solutions: Factor lending

This small biz tips video from CNN Money looks at credit crunch solutions for small to medium sized businesses impacted by the tightening of lending from conventional banks. The solution dealt with in this video is factor lending, a process by which a third party company advances part of the money on an invoice after services or products are delivered. The factor lender then collects the payment, pays the rest of the money from the invoice minus their fee and collects interest on the money it advanced. I'm really curious if any bizSugar users have any experience with factor lending and could add anything to the discussion about whether they are really a good option for business financing.