okay so this is supposed to be a blog, not a Q&A, but i’m in a quandry. I have always thought, based on a former MBA student Danielle De-Martino, who worked for a company that did factoring .. that most of the time this was done merely to outsource the credit & collection function. However, one of our new phd students, who was in an intern at the FASB and worked on SFAS 166 and later worked for PWC and had factoring-related clients, says that most often it is done for working capital needs…..

Help me anybody. How much is the one versus the other?