Factoring: Difference between revisions
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imported>Brianlenoach@hotmail.co.uk (Clarify.) |
imported>Doug Williamson (Link with Export factoring page.) |
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* [[Factors]] | * [[Factors]] | ||
* [[Export factoring]] | |||
* [[Internal factoring]] | * [[Internal factoring]] | ||
* [[Invoice discounting]] | * [[Invoice discounting]] | ||
* [[Recourse]] | * [[Recourse]] | ||
* [[Securitisation]] | * [[Securitisation]] | ||
Revision as of 22:02, 20 March 2015
The sale or transfer of legal title to accounts receivable to a third party (factor), either with or without recourse. Often a convenient but relatively expensive form of finance for weaker corporate credits.
A financing technique whereby a company sells its invoices, at a discount, to a factor. The factor then becomes responsible for collecting the debt.
Factoring arrangements can be with or without recourse.
Recourse factoring allows the factor to recover any losses caused by bad debts from the borrower.
