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Originally Posted by Matyko
I think this info might cause some kind of panic and more and more speculations, but have strong facts and interesting things in it. if someone has knowledge about how these financial things work can tell more based on this info.  |
Factoring is often used by companies to support working capital, for example where your invoices are normally paid on 30 to 60 days but you need an advance on the money quicker, so that you can operate your business.
The factor provides an agreed percentage of the money up front and a further percent less their fee when your customers pays.
An other example could be when you have assets that you cannot turn to liquid assets as quickly as you would like.......which is probably what would happen to a business if a large amount of money that they used to have immediate access to was suddenly frozen by somebody, I don't know, for example Visa or a Visa issuing bank maybe?
Of course there COULD be a more SINISTER reason for the factor's involvement, I am not denying that, I am just offering a suggestion that there COULD also be a legitimate one also...