Factoring vs. Bank Loans

Is factoring a type of loan?

No. Even though invoice factoring is commonly referred to as " factoring loans", it is a financial practice involving a B2B transaction, but no bank. To further explain, account factoring, it is when a company, like Peacock Capital, purchases your accounts receivable invoices at a discount and provides you with immediate cash. A traditional bank loan uses your company's accounts receivable as collateral, where account receivables factoring looks primarily at the financial soundness of your customers, not your company. Banks are regulated heavily; large finance companies generally are public and driven by pressures in the financial markets. When times are tough, banks and finance companies limit lending. A small business, too new to have a track record, with a weak balance sheet, with a history of financial problems, in turnaround mode or undergoing big changes, often cannot find a willing lender at any price. That is why factoring is best for small to mid-sized businesses.

Does a bank loan make more sense for my small business than invoice factoring?

No. Banks often have restrictive lending requirements relating to cash flow, profitability, equity, and years in business, which prohibit them from making loans to small to mid-sized businesses. Since factoring companies are not in the lending business and there is really no such thing as " factoring loans", the decision to purchase invoices is influenced primarily by the quality of your customer base and their financial stability, and not the financial fundamentals of your company.

Do I have to jump through the same hoops for account receivables Factoring as with bank financing?

No. All Peacock Capital needs to produce a proposal is a completed pre-approval form, summary of accounts receivable aging, summary accounts payable aging and some other basic financial information.

Do I have to be an established business operating a minimum number of years to start an account factoring relationship with Peacock Capital?

No. Peacock Capital prides itself on working with companies in all stages of business, including recently developed small to mid-size businesses. Even pure start-ups are usually not a problem for Peacock Capital. If your company has verifiable invoices and creditworthy customers, Peacock Capital will happily speak with you about an account receivables factoring relationship.

Are my receivables held as collateral while my company is factoring?

Yes. Peacock Capital requires a first position on all accounts receivable while you are factoring with us.

Does Peacock Capital require additional collateral when my company is factoring?

No. Within our traditional account factoring programs, a first position on accounts receivable is all that Peacock Capital requires while you are factoring. In some situations, Peacock Capital may take an available security interest in other company's assets.

Afra AmirSanjari is the Principal for Peacock Capital. Peacock Capital specializes in solving the cash flow challenges of Small/Medium Businesses, Government Vendors and Individuals with innovative financial solutions by providing a network for securing operating capital.

http://www.peacockcapital.com; info@peacockcapital.com

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table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.marketwatch.com/news/story/LendingTree-Loans-Selects-IBM-Loan/story.aspx%3Fguid%3D%257BA6EFBE40-4CC0-4A5D-ABFA-FEC4187C5EB7%257Dcid=1272930891ei=wawpSaqMC6GO6AOHzsmIDwusg=AFQjCNH5yO21cXVJCNFTxJ1AslCXzuj5swLendingTree bLoans/b Selects IBM for bLoan/b Fulfillment Services/abrfont size=-1font color=#6f6f6fMarketWatchnbsp;-/font nobrNov 21, 2008/nobr/fontbrfont size=-1LendingTree bLoans/b(SM), the company#39;s consumer direct online mortgage lender, to provide comprehensive, private label mortgage bloan/b fulfillment services. b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bizjournals.com/wichita/stories/2008/11/17/daily43.htmlcid=1272930891ei=wawpSaqMC6GO6AOHzsmIDwusg=AFQjCNFZUN26ELyzbbEJ76OBnY8eBQXIggLendingTree inks deal with IBM/a font size=-1 color=#6f6f6fnobrBizjournals.com/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1272930891hl=ennobrall 18 news articles/nobr/a/font/div/font/td/tr/table
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table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.guardian.co.uk/business/2008/nov/21/automotive-useconomycid=1273643967ei=wawpSaqMC6GO6AOHzsmIDwusg=AFQjCNGExhsQCmA1DzLso6aKn95qGthVAwimg src=http://news.google.com/news?imgefp=7Kt3769KQAIJimgurl=static.guim.co.uk/sys-images/Guardian/Pix/pictures/2008/11/19/us_car_460.jpg width=80 height=48 alt= border=1brfont size=-2guardian.co.uk/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.voanews.com/specialenglish/2008-11-20-voa4.cfmcid=1273643967ei=wawpSaqMC6GO6AOHzsmIDwusg=AFQjCNF3nzIcvrvQC6W-o3qrlnJt02cO-QCongress Delays Action on Auto Industry bLoans/b/abrfont size=-1font color=#6f6f6fVoice of Americanbsp;-/font nobrNov 21, 2008/nobr/fontbrfont size=-1The chiefs of General Motors, Ford and Chrysler asked for twenty-five billion dollars in new bloans/b. Congress already approved twenty-five billion in b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.youtube.com/watch%3Fv%3DgLuLvCR2bYEcid=1273643967ei=wawpSaqMC6GO6AOHzsmIDwusg=AFQjCNF816YuM7nkA9GnTrFuJXvd00gFBAVideo: Auto CEOs Tell Congress Why They Need $25b/a font size=-1 color=#6f6f6fnobrAssociatedPress/nobr/fontobject width=448 height=356param name=movie value=http://www.youtube.com/v/gLuLvCR2bYE/paramparam name=wmode value=transparent/paramembed src=http://www.youtube.com/v/gLuLvCR2bYEtype=application/x-shockwave-flashwmode=transparentwidth=448height=356/embed/objectbr/fontfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.reuters.com/article/ousiv/idUSTRE4AI13H20081119cid=1273643967ei=wawpSaqMC6GO6AOHzsmIDwusg=AFQjCNFS0V_lgygGIl_TwyNmI9u3XGtLTAFord says could wait on US bloans/b until 2009/a font size=-1 color=#6f6f6fnobrReuters/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.marketwatch.com/news/story/Detroit-Regions-Businesses-Urge-Congressional/story.aspx%3Fguid%3D%257B3BF25E89-D19F-4A85-8203-3B0932B38AE0%257Dcid=1273643967ei=wawpSaqMC6GO6AOHzsmIDwusg=AFQjCNH_uJ8Aop1dpUyOPmUkPMExUUNFlQDetroit Region#39;s Businesses Urge Congressional Compromise on bLoans/b b.../b/a font size=-1 color=#6f6f6fnobrMarketWatch/nobr/font/fontbrfont size=-1 class=pa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.lansingstatejournal.com/article/20081123/OPINION01/811230556/1086/OPINION01cid=1273643967ei=wawpSaqMC6GO6AOHzsmIDwusg=AFQjCNFPH2YNxxh0J2GFqsu4vInUYfG8XAnobrLansing State Journal/nobr/anbsp;- a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.indystar.com/article/20081123/BUSINESS/811230328cid=1273643967ei=wawpSaqMC6GO6AOHzsmIDwusg=AFQjCNGI-CG9ddp-E1MRDNioDBYazc75NgnobrIndianapolis Star/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1273643967hl=ennobrall 1,371 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.statesman.com/business/content/business/stories/statesmanhomes/11/23/1123upsidedown.htmlcid=1273465247ei=wawpSaqMC6GO6AOHzsmIDwusg=AFQjCNE1YKSEEQ-yssGe7GF7PkvmSn76pQPlans change as some owners get upside down on bloans/b/abrfont size=-1font color=#6f6f6fAustin American-Statesman,nbsp;TXnbsp;-/font nobr22 hours ago/nobr/fontbrfont size=-1The threat of walk-aways prompted the Federal Housing Administration to tighten rules about bloans/b to buyers who say that rent from their old home will help b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://freeinternetpress.com/story.php%3Fsid%3D19233cid=1273465247ei=wawpSaqMC6GO6AOHzsmIDwusg=AFQjCNFm06gRg7IZ3U5lVn0CXyDygzuoTwThe Next Subprime Crisis Looms - FHA-Backed bLoans/b/a font size=-1 color=#6f6f6fnobrFree Internet Press/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bostonherald.com/news/regional/view.bg%3Farticleid%3D1134250cid=1273465247ei=wawpSaqMC6GO6AOHzsmIDwusg=AFQjCNFkYWifXC0baJ7geSAU5gVMlKuGjgSpringfield gains aid from Federal Housing Administration/a font size=-1 color=#6f6f6fnobrBoston Herald/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1273465247hl=ennobrall 4 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.latimes.com/business/investing/la-fi-banks22-2008nov22,0,3887469.storycid=1273004320ei=wawpSaqMC6GO6AOHzsmIDwusg=AFQjCNGs6INbgXFUnZspWvaBypabfJinQQimg src=http://news.google.com/news?imgefp=HFloPpWkgaoJimgurl=www.latimes.com/media/photo/2008-11/43535151.jpg width=80 height=52 alt= border=1brfont size=-2Los Angeles Times/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.contracostatimes.com/california/ci_11054118cid=1273004320ei=wawpSaqMC6GO6AOHzsmIDwusg=AFQjCNG776UME5RJ6-SoITwUdixG3nAoiwPFF now US Bank/abrfont size=-1font color=#6f6f6fContra Costa Times,nbsp;CAnbsp;-/font nobr11 hours ago/nobr/fontbrfont size=-1US Bank will modify the terms of certain mortgage bloans/b in accordance with the FDIC Mortgage bLoan/b Modification Program. Between Downey Savings and PFF Bank b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.dailypilot.com/articles/2008/11/22/topstory/dpt-downey112308.txtcid=1273004320ei=wawpSaqMC6GO6AOHzsmIDwusg=AFQjCNHq-hukhkkS4pOWXDa1_C5xPfP7vQ• Downey closes due to losses/a font size=-1 color=#6f6f6fnobrDaily Pilot/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.latimes.com/business/la-fi-downey21-2008nov21,0,7721667.storycid=1273004320ei=wawpSaqMC6GO6AOHzsmIDwusg=AFQjCNEvnnhS_t7xaL47J1KXV8gmGe8RpQDowney Financial could be next bank casualty/a font size=-1 color=#6f6f6fnobrLos Angeles Times/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.washingtonpost.com/wp-dyn/content/article/2008/11/21/AR2008112104099.htmlcid=1273004320ei=wawpSaqMC6GO6AOHzsmIDwusg=AFQjCNGDyGVICJxfzW9g7KT-5hOnWrguywFDIC Seizes Three Banks, Expanding bLoan/b-Relief Effort/a font size=-1 color=#6f6f6fnobrWashington Post/nobr/font/fontbrfont size=-1 class=pa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.forbes.com/feeds/ap/2008/11/22/ap5729925.htmlcid=1273004320ei=wawpSaqMC6GO6AOHzsmIDwusg=AFQjCNEHCMSASkanTiu6YVOmgWK4ivlYTAnobrForbes/nobr/anbsp;- a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bloomberg.com/apps/news%3Fpid%3D20601103%26sid%3DaAyVj8SZ7Y0I%26refer%3Dnewscid=1273004320ei=wawpSaqMC6GO6AOHzsmIDwusg=AFQjCNEGHciPOg34vEg9PI-syoKnVMhpMQnobrBloomberg/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1273004320hl=ennobrall 825 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.cbsnews.com/stories/2008/11/12/eveningnews/main4597233.shtmlcid=1272622308ei=wawpSaqMC6GO6AOHzsmIDwusg=AFQjCNEdqpwFmiOLyACsIBUNwodejShS8gimg src=http://news.google.com/news?imgefp=YEgZEAZJ__YJimgurl=wwwimage.cbsnews.com/images/2008/10/07/image4505580g.jpg width=80 height=60 alt= border=1brfont size=-2CBS News/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.cbsnews.com/stories/2008/11/21/earlyshow/main4623049.shtmlcid=1272622308ei=wawpSaqMC6GO6AOHzsmIDwusg=AFQjCNEAsGxAELJCfBCSWWnltHIspVsCCwWho#39;s Getting $2 Trillion In Fed bLoans/b?/abrfont size=-1font color=#6f6f6fCBS News,nbsp;NYnbsp;-/font nobrNov 21, 2008/nobr/fontbrfont size=-1The Federal Reserve Board has been quietly providing $2 trillion in quot;emergencyquot; bloans/b to banks, and the pace has been quickening, Early Show National b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.youtube.com/watch%3Fv%3DEjPYdXmXMRQcid=1272622308ei=wawpSaqMC6GO6AOHzsmIDwusg=AFQjCNFEAkQ6y37TqcHZefmTQHS2nBKy2QVideo: Consumer Prices Drop Record 1 Percent in October/a font size=-1 color=#6f6f6fnobrAssociatedPress/nobr/fontobject width=448 height=356param name=movie value=http://www.youtube.com/v/EjPYdXmXMRQ/paramparam name=wmode value=transparent/paramembed src=http://www.youtube.com/v/EjPYdXmXMRQtype=application/x-shockwave-flashwmode=transparentwidth=448height=356/embed/objectbr/fontfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bloggingstocks.com/2008/11/20/can-the-fed-fight-deflation-how/print/cid=1272622308ei=wawpSaqMC6GO6AOHzsmIDwusg=AFQjCNEPMACzZdZHPji_I85v0YZlTi8B7ACan the Fed fight deflation? How?/a font size=-1 color=#6f6f6fnobrBloggingStocks/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.cfo.com/article.cfm/12652551/c_12636493%3Ff%3Dhome_todayinfinancecid=1272622308ei=wawpSaqMC6GO6AOHzsmIDwusg=AFQjCNHuBASNS0oHfxVlU9h_OLWm1KzgwwDepressing Times/a font size=-1 color=#6f6f6fnobrCFO.com Magazine/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1272622308hl=ennobrall 1,634 news articles/nobr/a/font/div/font/td/tr/table
loans - Google News


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