The buying of debts at a discount.
Advancing funds against future short term trade receivables, usually With Recourse. Can differ from simple Invoice Discounting because of additional services, such as sales ledger management which the factor company may provide.
Invoice purchase by a bank (factor) who advances around 80% of the value of the invoice immediately. The factor collects payments when they fall due. The customer typically makes payment directly to the factor who passes on the balance
Sale of an accounts receivable balance to buyers (factors) that are willing and able to bear the costs and risks of credit and collections.
A form of financing where a company sells its account receivables usually at a discount to a financing company. The financing company usually requires recourse, which means that although the company sold its receivables, it is still liable for performance.
A continuing agreement by a financial institution with its client, (1) to buy its open accounts receivable (with or without recourse for any credit losses), (2) generally to notify client's trade customers, (3) to assume the responsibilities for credit checking and collections.
A method of raising working capital by selling your business's accounts receivables to a bank at a discounted rate. The bank then manages and collects the money due.
The selling of a company`s accounts receivable to ... more
The sale or transfer of a company's accounts receivable to an outside company called a factoring company that now collects and processes the receivables as well as incurs any risks associated with their collection. Usually a company "factors" its receivables, selling them at a discount to the factoring company, in exchange for cash.
A finance option achieved by selling receivables to a third party at a discount. Primarily done as a means of improving cash in-flows.
The sale of receivables from one company to another at a discount.
When a legitimate merchant processes another merchant's transactions in return for payment. This practice is forbidden by the associations.
When used in e-commerce, the term is applied to companies that offer to process credit card transactions through their own merchant account rather then having the merchant purchase their own, in exchange for a percentage of the transaction. This is an illegal practice and will result in heavy fines. Also known as credit card laundering.
selling debts or receivables at a discount to someone who will try to collect the debt at full value.
A procedure in which a firm can sell its accounts receivable invoices to a factoring firm, which pays a percentage of the invoices immediately, and the remainder (minus a service fee) when the accounts receivable are actually paid off by the firm's customers.
The buying and selling of invoices or accounts receivables.
Service of assuming the credit risk of another party's sales, generally including collecting payment when due. Factors often provide or arrange limited-recourse financing against the accounts receivable they are guaranteeing, referred to as "purchasing receivables."
A funding source that specializes in funding accounts receivable.
The selling of a company's accounts receivable to a financial institution normally at a discounted rate. Factoring is usually performed to increase cash flow, instead of waiting for the normal terms associated with selling to customers (ie. net 15, 30 or 45 days ).
In e-commerce, this term is often applied to companies that offer to process credit card transactions through their own merchant account rather than having the merchant purchase their own, in exchange for a percentage of the transaction. Factoring of credit card debt is illegal.
The selling of a business' accounts receivable to a third party. Invoices are generally sold without recourse (i.e., the factor cannot turn to the client for repayment, or compensation for the advance, if the invoice proves to be uncollectible), although they can be sold on a recourse basis. Factoring is usually done on a notification basis, whereby the client notifies its customer to pay the factor directly
A facility whereby the client receives early payments against their sales invoices and a collections service to chase in unpaid debts. Bad debt protection ( non recourse) may also be provided.
Purchasing debt from the original debt holders at a substantial discount, then servicing or collecting the debt.
The outright purchase of accounts receivable. Float The amount of time required to allow a demand note or a check to be converted to "hard cash" and made available to the recipient of such a note. Institutions refer to this as "in suspense" or "hold" status.
1. The process of selling receivables to a firm that is in the business of buying receivables at discount and collecting them, rather than waiting until their average due date to get the funds; 2. May be referred to as asset-based lending, and is generally a non-bank source of funding. The factor will generally possess a lien on accounts receivable, inventory, and possibly other assets. Factoring may be the only alternative for some borrowers if they are unable to negotiate conventional bank financing.
A process whereby one company takes over the responsibility of debt collection from another.
GFC offers the experience and the ability to factor and finance imports and exports.
One Seller's depositing to its account drafts that have originated from the sales of another Seller, generally one that cannot obtain a Seller account in its own name.
Ongoing purchase of short-term trade accounts receivable by a factoring company. Factoring is a form of financing, which allows companies to increase their liquidity. To do this, a company or customer signs over trade accounts receivable to the factoring company in exchange for an advance on the amount receivable.
The discounting of an account receivable in order to receive immediate payment.
sell receivables to company which becomes responsible for collection
This term refers to the practice of allowing more than one merchant to process transactions through a single merchant account. Factoring is not permitted under Visa, MasterCard and American Express regulations.
Advance of finance against unpaid, outstanding sales invoices by a factor (factoring company). Some degree of credit management is also built into the facility. Facilities can be structured so that the credit risk remains with the business or is passed on to the factor.
An arrangement whereby a company sells its invoiced debts, at a discount from their face value, to a specialist debt factor. This gives the company immediate cash and transfers the credit risk from the company to the debt factor.
A process whereby a company pays the business a proportion of its debts in advance in return for payment later on.
The purchase of trade receivables at discount by a specialised third party. The factor takes responsibility for collecting the purchased receivables and, in cases that the factoring agreement is on a non-recourse basis, the associated risk. Factoring therefore has a dual function: funding and, in the case of a non-recourse agreement, transfer of risk.
type of financial service whereby a firm sells or transfers title to its accounts receivable to a third party which then acts as principal, not as agent. The receivables are sold without recourse, meaning that the factor can’t turn to the seller in the event accounts prove uncollectible.
The selling of a company's accounts receivable to a third party, in order to obtain funding.
Another form of borrowing for companies. A commercial loan can be secured against the value of any outstanding invoices, rather than a property. This is also known as ‘invoice discountingâ€(tm).
A form of accounts receivable financing involving the sale of accounts receivable to a factoring company either with or without recourse. Factoring can be on a notification or non-notification basis. In a notification agreement, the seller's customers will make payment directly to the factor. A credit check is usually made on the seller's customer; so the factor can serve as a credit information resource for the seller.
The purchase of the accounts receivable of a business or alternately, taking the accounts receivable of a business as collateral for a loan.
Factoring is an arrangement that allows a business to realise the cash benefit of its sales immediately. This is achieved by assigning sales invoices to a Factor who typically pays a certain amount of their face value to the borrower with the balance (less costs) being paid once payment is received from the debtor.
An advance against unpaid sales invoices and full or partial credit management
The bribery of a legitimate Merchant to process another Merchant's transactions (often fraudulent) in return for payment.
selling or transferring title of the accounts receivable to a third party (factor) in order to raise capital without taking out a loan
A company which is owed money by trade debtors faces the risk of slow payment or default on those debts, which can put strain on its cash flow. One of the ways it can mitigate this danger is by 'facto (More)
One merchant's depositing to its account drafts that have originated from the sales of another merchant, generally one that cannot obtain a merchant account in its own name.
The selling of your commercial invoices to generate short term funds to meet existing obligations such as payroll.
Short and medium term financing of business transactions, in which the factor assumes responsibility for the credit, collection and record keeping functions for the client.
Factoring describes an arrangement whereby the debts of a business are collected by a factor business, which advances a proportion of the money it is due to collect. (See also invoice discounting).
A method of financing in the recovery of debts.
The sale of debts (normally only 'clean' debts, however) to a third party (the factor) at a discount in return for prompt cash. The factor in effect takes over the running of the sales ledger.
Instant cash upon issuing invoices and sales ledger and collection services.
Providing working capital to businesses by buying their receivables (usually at a discount and on a non-recourse basis) rather than lending against them.
The purchase of a business' accounts receivable at a discount.
Sale of a firm's accounts receivable to a financial institution known as a factor.
The business of purchasing and collecting accounts receivable.
Arrangement whereby a financial institution buys a company's accounts receivable and collects the debt.
A form of corporate financing in which a company transfers outstanding debts to a factoring company that, for a fee, assumes responsibility for the debtor records, risk coverage and financing.
is an asset-based loan that assists to improve cash flow. Business may sell its invoices or other receivables at a discount to obtain immediate cash advance from a lender. Factoring relinquishes receivables department to a lender who collects borrower's customer payments to repay against the loan. There are two types of factoring: maturity factoring and old-line factoring.
Factoring is the process of purchasing commercial accounts receivable (invoices) from a business at a discount.
A method of financing trade whereby the factor purchases the seller's accounts receivable with or without recourse.
Selling a RECEIVABLE at a discounted value to a third party for cash.
Short-term financing from the sale of accounts receivable to a third party.
The purchase of debts owed, or "accounts receivable," in exchange for immediate payment at a discount. In e-commerce, the term is often applied to ISOs that offer to process credit card transactions through their own merchant account, rather than through an account established by the merchant, in exchange for a percentage of the transaction or other fee. Factoring of credit card debt is illegal.
Procedure whereby a specialized finance company or bank purchases the accounts receivable of affirm without resource
An arrangement whereby a creditor sells his debts to a factor for an immediate sum, usually for a proportion of their face value. The factor then collects the debts as they fall due. Bad debts revert to the debtor who has to repay the amount received from the factor.
Technique whereby a seller of goods or services can assign his professional debts from his buyers to a specialized organization, i.e. the factoring house, which looks after managing the invoice, as well as its collection and/or financing.
A method of funding from the sale or transfer (with or without recourse) of a company's accounts receivable to a third party (a factor). See non-recourse and recourse factoring.
