Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount. [1][2][3] A business will …

Jan 25, 2025 · Factoring can help companies improve their short-term cash needs by selling their receivables in return for an injection of cash from the factoring company. The practice is also known …

Dec 7, 2025 · Factoring vs. Traditional Business Loans Factoring is structurally distinct from traditional debt instruments such as bank loans or lines of credit, particularly in how collateral is assessed and …

Factoring (called " Factorising " in the UK) is the process of finding the factors: Factoring: Finding what to multiply together to get an expression. It is like "splitting" an expression into a multiplication of …

Feb 13, 2025 · Factoring is a financial transaction in which a company sells its accounts receivable in exchange for immediate funds. Factoring is offered by firms called factoring companies and some …

Definition: Factoring is a type of finance in which a business would sell its accounts receivable (invoices) to a third party to meet its short-term liquidity needs. Under the transaction between both parties, the …

Factoring is an alternative type of business funding. Instead of relying on traditional borrowing methods, factoring boosts cash flow through invoice financing. This means the business sells its invoices at a …

Factoring involves three parties—a factor, a client, and a debtor. The factor is the financial institution that offers finance to a client (in exchange for receivables). The client is the firm that sells its receivables; …

Jun 5, 2025 · Factoring is the process of breaking down a number or expression into its building blocks, its factors.

Apr 29, 2024 · Factoring is a financial transaction where a business sells its accounts receivable (invoices) to a third party (called a factor) at a discount.