What is Invoice Factoring?

Definition: Invoice Factoring

invoice factoring and receivables financing

GET STARTED


WHAT IS INVOICE FACTORING?

In a financial transaction known as invoice factoring (or factoring), a company sells its invoices or accounts receivable to a factoring company or third party at a held-back discount in return for quick cash. The factoring company credits the held-back difference to the company after collecting on the invoice, less a modest transaction fee.

Factoring can be beneficial for businesses that bill their commercial customers on credit in terms of managing working capital, credit risk, and cash flow. Businesses frequently utilize it to manage working capital, increase cash flow, and meet the financial demands of expansion.


For more information about Invoice Factoring, please use this short form. We will contact you shortly.

get started