Small startups can leverage a factoring company to handle A/R and do risk assessment for lines of credit with customers before doing work. Definitely a worthwhile service to leverage if you do B2B.
The short list/affacturation scam. Software can only support safely at most 10 providers ... for RA.. facturing ... limitations.
Thus I had between 1 and 4 mans in the middle for the purpose of "factoring, risks assessments" and shits.
I usually was paid 300€ to 400€ / days when customers were billed between 1000€ and more. Each companies adding delays and free to use and recycle my specs, my codes, my works to compete against me next time. Added value : negative.
Have you ever been 38 yo, back at your mum's place, honoring a contract and eating ramen while waiting 18 months for the magic of "affacturation" to work and discovering that the men in the middle are now making money from YOUR creation ?
Fuck rotten so called capitalism.
Only the kids born rich gets the money and they scam people like me to have the job done.
This business is very close to both scam and extortion.