answersLogoWhite

0

Factoring is a term describing a business model. In that model, a business sells invoices or debts to another party, which is called a factor, with a discount. The third party buying debts or invoices mostly pays around 70-85% of the net price.

User Avatar

Wiki User

12y ago

What else can I help you with?

Related Questions

Which are the most famous factoring consultants in UK?

There are many well known factoring consultants in the UK including Burdale Financial Ltd, City Invoice Finance Ltd, GE Commerical Finance, Lloyds TSB Commercial Finance, and Skipton Business Finance Ltd.


What has the author Herman Braeckmans written?

Herman Braeckmans has written: 'Factoring' -- subject(s): Factoring (Finance), Law and legislation


What has the author A K Sen Gupta written?

A. K. Sen Gupta has written: 'Factoring services' -- subject(s): Factoring (Finance)


What has the author David B Tatge written?

David B. Tatge has written: 'American factoring law' -- subject(s): Law and legislation, Factoring (Finance)


What exactly is a Factoring Company in Omaha, Nebraska And what exactly do they factor?

not only in Omaha but any where factoring company means a finance company. They provide financial assistance


How would one describe debtor finance?

Debtor finance can be described as a funding process and is also marketed as invoice discounting and factoring. There are several types of debtor finance such as confidential and disclosed.


What does SME Invoice Finance specialize in?

SME Invoice Finance specializes in invoice discounting and invoice factoring. SME Invoice Finance is based in the UK and can be contacted at 0800-083-8835.


Why is small business factoring useful?

"Small business factoring is useful to gain money with which to finance the business. It is not a loan, but rather a transaction in which invoices are sold, at a discount, to a third party."


Is there any free e-book available on Factoring as in finance?

I am not aware of any free Finance Factoring or Invoice Factoring eBook, but the website ProposalPortal.com can provide you with free competing Factoring Lender Quotes. Here is a basic summation of Factoring for you though: Invoice Factoring is primarily utilized by New Businesses since traditional sources of financing & equity are not available to them yet. There has also been a recent increase in popularity for Factoring now that banks are more hesitant to loan money in general, so established businesses are more frequently turning to Factoring for a quick, hassle-free funding source. For Invoice Factoring, You can easily compare competing Factoring Lender Rates for Free by submitting a request at ProposalPortal.com by pasting this link into your browser: leads.proposalportal.com/_forms/subforms/index.php?type=12&source=Wiki ----


What is factoring in business?

In business factoring refers to a transaction in which invoices or accounts receivable are sold for immediate payment generally to improve cash flow. Today the term "factoring" is used almost synonymously with invoice discounting, accounts receivable finance and all of their nuances.


What is meant by the term factoring accounts receivable?

Factoring accounts receivable is a term used in finance. It refers to a specific kind of transaction in which one business sells invoices to another business at a discount.


Where can one find information on accounts receivable factoring?

One can find information about accounts receivable factoring from many places online. Some of these places include: Riviera Finance, JDFinancial, and ARFunding.