 
Since many businesses do not have unencumbered assets to offer as collateral for a loan, factoring may serve as an excellent alternative. Factoring enables you to turn your business accounts into instant cash, thereby creating much needed cash flow. Increased cash flow can help a growing business to do things like: - Take advantage of growth opportunities
- Address periodic or seasonal cash flow challenges
- Meet payroll
- Fill pending purchase orders
- Take advantage of vendor discounts
- Buy equipment
- Reduce stress by bridging the cash-flow gap
Factoring is “off balance sheet financing,” which means that when an invoice is sold, it immediately converts from a non-cash asset to a cash asset. There is no bank line or credit line reported to any credit agency. The factoring relationship does not affect credit scores or debt-to-income ratios. Working with a factor is like having your own accounts receivable advocate. Your factor follows up on outstanding invoices and often finds simple mistakes that can be easily remedied, like an invoice that has been lost or other missing documentation. Resolving these minor errors can result in a faster pay cycle. What are other advantages of factoring with LDI? - Invoices paid in real time (funding on approved invoices within 24-48 hours)
- Back office receivables management at no extra cost
- Credit review performed on selected new customers by credit professionals
- No debt on the balance sheet
- Factoring facility does not show on your credit report and does not affect debt ratio
- Time savings to the business owner
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