Business Terms Glossary
Factoring
Definition of Factoring
Factoring is a procedure in which a firm can sell its accounts receivable invoices to a factoring firm, which pays a percentage of the invoices immediately.
Many business owners factor receivables to improve their cash flow. However, factoring comes at a price and it should only be considered after a thorough evaluation of all available financing mechanisms.
Factoring References On This Site
These Gaebler.com articles mention this glossary term:
- Factoring Receivables - The Basics - By selling your invoices to a factoring receivable company you gain quicker access to the majority...
- Factoring Receivables - It's called factoring receivables and it may be a good way to...
- Factoring Receivables - The Basics - By selling your invoices to a factoring receivable company you gain quicker access to the majority...
- Factoring Receivables - It's called factoring receivables and it may be a good way to...
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