Bank Financing or Private Credit? What Factoring Companies Should Consider

In this episode of Sounding Board, factoring specialists Claudia Montalbano of Verity Accounting Solutions and Becky Gibbs of Boyum Barenscheer discuss financing considerations within the factoring space. The conversation explores the differences between traditional bank financing and private credit, emphasizing the importance of looking beyond interest rates to understand the total cost of financing, including fees, reporting requirements, covenants, and operational demands.

Claudia and Becky also share insights on how portfolio size, growth planning, and lender expectations can influence financing decisions, including when audit, review, or other assurance requirements may come into play. The episode highlights the value of forecasting, proactive communication with lenders, and thoughtful planning to support sustainable growth for factoring companies.