I never got into the weeds as I didn’t end up taking the job, but ill explain a bit: The factoring company buys a company’s invoices at some discount, say $.90

I never got into the weeds as I didn’t end up taking the job, but ill explain a bit: The factoring company buys a company’s invoices at some discount, say $.90 cents on the dollar. Companies that need factoring are usually small businesses in dire straits (if the straits weren’t dire, why couldn’t you get a regular business loan/line of credit?). This is where it started to look a bit like a shylock to me, not to say all factoring companies are nasty, but this one definitely smelled funny to me. Bad factors will deliberately look for desperate businesses and take advantage, buy their receivables for say $.60 on the dollar, company barely makes pay roll, has to continuously keep factoring. There’s also stacking fees for things like unpaid receivables and contracts that give the factor recourse to go after a company’s assets directly in case of unpaid invoices. It just seems a little parasitic, a little mafiaso to me. I never took the job so this could be somewhat cynical and uninformed as well.