I’m sure you’ve heard of people and businesses that get into financial trouble due to excessive debt. For individuals it is usually with their credit cards. For companies it is with a bank loan or line of credit.
With factoring you can avoid these pitfalls, because factoring is not debt, it is simply accelerating receipt of money that is already rightfully yours, as you have already delivered the product or service to your customer, and are waiting to get paid.
Some factoring companies even provide “non-recourse” factoring, meaning they advance you the cash, and then take on the “risk of non-payment” on the part of your customer, therefore releasing you of the responsibility to collect.