New factoring directory for small business financing.

CPAS who advise small and medium-sized businesses should take note of a new directory of U.S. factoring companies, which also describes factoring basics and includes a glossary of terms and a statistical overview of the factoring industry.

Factoring is the practice of purchasing and selling accounts receivable invoices at a discount from their face value. It has be come an increasingly common financing method, especially in the service sectors. According to directory editor Mace Edwards, businesses most frequently factor to finance sales growth. "It's an alternative to bank financing or venture capital that lets growing companies accelerate and stabilize cash flow," Edwards said. Moreover, many growing companies that fail to meet bank lending criteria because they lack real assets other than receivables or have short operating histories turn to factoring, using it as a bridge to future debt or equity financing.

The 488--page directory has information on almost 200 U.S. factoring companies--including data on size, individual factoring programs, rate structures, industry preferences, contract terms and operating practices.

The Edwards Directory of American Factors sells for $250 (plus $8.50 for shipping and handling) and is available from Cross Industry Communications, Inc. at [phone].