Factoring - What is it?

Factoring finance is an arrangement between a factoring company and the seller of business goods or services on credit, where the factoring company purchases debt (the value of sales invoices) for immediate cash, and may, depending upon the exact nature of the arrangement:

Maintain the sales ledger and perform collections and related administrative tasks

Collect the debt (receivables)

Provide bad debt protection

For further information please visit: State Securities