Can businesses use accounts receivable financing if it has already Bank line or Tax Liens?


Many times the company believes if they have an existing bank loan or line of credit that they will not be allowed to sell their claims.

In some cases, the company may still be eligible to work full-service aspect and realize the benefits of factoring.

For starters, oftentimes banks may not have used the current requirements for collateral. If there is no mortgage on the accounts calculated the company is free to sell them as the owner sees fit.

Second, depending on the circumstances, if the bank is to have a mortgage oftentimes they are ready to depart when the bank understands the situation.

The other option is to pay off existing loans. This requires enough requirements to take advantage of buy-out, but it may be an option.

Believe it or not, many reference actually come from loan officers who were unable to provide further assistance to bank customers. Many lenders are very familiar with “temporary factors” and welcome the assistance.

Tax liens work in a very similar way to work with banks. They are treated on a case-by-case basis. Remember, the government wants to get paid as well. They have been known to leave his position to improve their chances of receiving payments on back taxes.

by a bank loan, line of credit or a tax lien can not exclude yourself from the benefits and financial freedom, take advantage of full service factor. Just be sure to mention the situation upfront when the application to factor accounts receivable. This will help set the stage for good cooperation and avoid delays or confusion during due diligence.


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