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In this video tutorial, Ian Johnson from DriveSuccess.com discusses the differences between bank financing for receivables and receivables factoring, an asset-based financing solution. He addresses common customer inquiries regarding how to compare and analyze these options, highlighting the benefits of factoring. A sample Excel spreadsheet is available on his website for viewers to input variables like interest rates and collection days. Johnson explains that banks typically charge a cost of capital; for instance, a yearly interest rate of 6% translates to a daily interest rate of 0.0164%. This foundational comparison sets the stage for understanding factoring benefits.