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Factoring vs Asset Based Loans. * ABL : larger total facility. As ABL: A/R, inventory, equipment, real estate. Factoring: only A/R * ABL: % advanced is less than Factoring * ABL: loan vs Factoring: asset sale * ABL: based on financials vs Factoring: focus on client … credit worthiness
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Factoring vs Asset Based Loans *ABL : larger total facility. As ABL: A/R, inventory, equipment, real estate. Factoring: only A/R * ABL: % advanced is less than Factoring * ABL: loan vs Factoring: asset sale * ABL: based on financials vs Factoring: focus on client … credit worthiness * ABL: greater fees vs Factoring: considerably less * ABL: non-notification vs Factoring: notification * ABL: perform all credit and collection functions * ABL: assume risk for non-payment vs Factoring: non-recourse available * ABL: interest charges less than Factoring charges