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Understanding Lines of Credit (LOC): Definition, Types & Examples
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investopedia.com
The real cost isn't factoring. The real cost is stalled execution. Most CFOs compare factoring to bank lines on rate alone. That comparison misses the actual constraint. A line of credit gives you access to capital—but it's capped, covenant-dependent, and can be pulled during stress. If you're running $8 million in monthly receivables and your line is maxed at $3 million, timing becomes the bottleneck. You can't take the order, fund the production run, or bridge payroll—not because the margin is
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The real cost isn't factoring. The real cost is stalled execution. Most CF…
5 views3 months ago
FacebookLarry Carnahan
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