AmiSight 9/3: When Factoring Meets SBA Rules

The new SBA rule that prohibits refinancing a factoring facility with an SBA loan caught up with me last week. It was unfortunate—the company had used factoring responsibly to grow from startup to about $3 million in revenue.

There’s still a way forward—we’ll find a conventional term loan to refinance the facility—but the terms won’t be as appealing as an SBA loan would have been.

It’s a reminder that while factoring can be a useful tool, the financing paths it leaves open later aren’t always the ones you’d prefer.

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