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Receivables financing, which can take the form of either bank revolving credit lines or factoring (i.e., sales of receivables), can be an effective way to manage the cash conversion cycle of a B2B business, as you note. When using a factoring facility, take care to read the terms carefully. Not an exhaustive list, but it is often important to understand: - how and when the factoring fees are applied - how chargebacks of disputed or unpaid receivables are treated - how and when the reserve is funded and released - whether the factor's commitment to purchase receivables is ongoing or can be offered/declined on an invoice-by-invoice basis - any customer concentration limits - whether the advance rate applies in all instances or only for certain account debtors (98% is very attractive in my experience, which isn't to say these aren't the terms they're offering, but it would cause me to look very closely at the other terms) - whether you're required to obtain trade credit insurance on your customers - whether you're required to guarantee the deal and if so, what the terms of that guarantee are - last but not least, whether the factoring facility is being offered on a recourse (i.e., if you're on the hook if the customer fails to pay, pays late, or becomes insolvent) or nonrecourse basis and, if nonrecourse, what chargeback rights remain in effect for the factor's benefit