Today I was quoted in an article in Bloomberg Businessweek on factoring as a method of funding for small businesses. Unfortunately, many small businesses find themselves forced to turn to factors for funding. Here is my quote from the article:
Mark Deo, Torrance (Calif.)-based executive director of the consulting firm Small Business Advisory Network, says many entrepreneurs he consults with have turned to factoring, not only because they lack access to credit but also because they are having problems getting new business. “Factors are oftentimes the only source of funding for desperately needed cash, but it is very sad that business owners who have worked for years to build their businesses are entertaining factoring just to fund new purchases, equipment, or improvements,” he says.