[Alleon Healthcare]

All things being equal, which do you prefer? for your client and for yourself?

[Zach]

There are certainly advantages to both financial instruments. Factoring will have a much smaller total cost, and will not negatively impact a merchant's cashflow. However with factoring there is no actual net gain to operating capital (you are essentially being fronted money that is already yours).

With a cash advance there is a true influx of capital coming into the business (albeit, for a short period). This capital can give you a boost for projects, unique opportunities, or immediate cashflow needs. Obviously the cost is much greater, but there is also a far greater risk for the lender, and the merchant will temporarily see a net gain in operating capital. Of course, by the time the 3-18 months are over, unless the client was able to generate significant revenues, their operating capital will often be left in a WORSE position than when they started.

Both instruments are great and have their own niches. It's hard to say which we "prefer" right off the bat, since there are such significant differences between the two.