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imported>Doug Williamson |
imported>Doug Williamson |
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| The sale or transfer by a supplier of legal title to accounts receivable (invoices).
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| The supplier sells or transfers title to the receivables to a third party known as a factor.
| | To discharge a debt by giving or doing something. |
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| The arrangement can be either with or without recourse.
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| Factoring is often a convenient - but relatively expensive - form of finance for weaker corporate credits.
| | More specifically to give money in return for goods or services. |
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| The supplier sells its invoices, at a discount, to the factor. The factor then becomes responsible for collecting the debt.
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| A factoring agreement between the factor and a client sets out the terms on which a factoring arrangement is made.
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| As noted above, factoring arrangements can be with or without recourse.
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| Recourse factoring allows the factor to recover from the supplier/borrower any losses caused by bad debts.
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| == See also == | | == See also == |
| | | * [[Debt]] |
| * [[Factors]]
| | * [[Payment]] |
| * [[Domestic factoring]]
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| * [[Export factoring]]
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| * [[Import factoring]]
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| * [[Internal factoring]]
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| * [[International factoring]]
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| * [[Invoice discounting]]
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| * [[Recourse]] | |
| * [[Securitisation]] | |
Revision as of 14:04, 21 August 2013
1.
To discharge a debt by giving or doing something.
2.
More specifically to give money in return for goods or services.
See also
