Denny,

I beg to differ with your opinions. The factoring industry has come a long way from the garment industry period you describe. Comparing it to the subprime mortgage racket is a red herring because they literally have nothing to do with each other. There are no similarities especially given that the rates on factoring do not automatically increase like an ARM, which gave rise to the mess (making a mortgage payment unaffordable.)

Common state usury laws make your claim of 14% monthly discount rates highly unlikely.

Having provided clients with factoring services for two decades I can speak to real examples of businesses utilizing it properly as a bridge to institutional commercial financing and moving on to greater success.

Factoring is a financial tool, not a boogey man.