Factoring Definition: Are you tired of waiting on receivables? If your business could benefit from having cash within 24 hours from generating an invoice, then you may want to take a closer look at factoring.
Discount Factoring refers to an arrangement whereby a factor purchases an account(s) receivable from a business at a discount to the face value of that receivable. The factor earns a fee based on the number of days that the receivable remains unpaid, i.e., the longer the receivable remains unpaid, the larger the fee incurred.
Factoring provides cash to your business with no time delay from issuing invoices as well as sales ledger and collection services.
Accounts Receivables Financing (Factoring): The invoices you issue upon a sale are sent to the factor who typically advances up to 80 to 90% of the invoice amount to you.
