FACTORING COMPANY

Factoring is a financial transaction where a business owner sells invoices (accounts receivable) to a third party (called a factor)... Factoring is not considered a loan so the company selling invoices is not incurring additional debt. The invoice is sold at a slight discount to a factoring company... A Factor is able to give a company a lump sum of cash, upfront, for the yet-to-be-paid invoice. This helps the company continue to make payroll, pay other bills, or even expand their business.

Also known as: Factoring Investor, The Factoring Company

Primary location: Orlando United States