A 6% fee repaid over 90 days is not 6% money. Annualised it is closer to 26%, and that is before you account for the drag of daily remittance on cash timing.
Revenue-based finance suits fast-turning, high-margin catalogues. Asset-backed lines suit slow, seasonal ones. Factoring only makes sense with wholesale receivables.
Whatever you choose, model the worst case: a 30-day slip in arrival plus a 20% sell-through miss. If that breaks the repayment schedule, borrow less.
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