[Kevin Henry-Seacoast]

Factors are a line of credit as well, using the AR as a borrowing base.

Some factors charge a service fee and interest on funds drawn. Some just charge services fees. In either case, the agreement is for a purchase of invoices not a line of credit. Borrowing Bases are used for asset based lines of credit or legered asset based lines of credit. These facilities are for companies generating much more revenues than $200K/Month.