| FINANCIAL BUSINESS RECEIVABLES (FACTORING) - contin. |
| The money that is advanced to
you is really owed by Megastore X, your client. So the primary qualifier
for the advance is your customer, not you. In other words, if you've been
turned down by your bank for a line of credit, don't worry: unless Megastore
X has a history of not paying their suppliers, you'll get your money.
So why not go to the bank for this capital? You should go there first. If you can qualify for a business line of credit, it will certainly be less expensive. And your goal while using a factor should be to establish such credit with your bank. But unfortunately many bankers' hands are tied by endless regulations and arcane underwriting formulas that don't allow them to lend to many worthy customers.
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