STRATEGY I SOLUTIONS I INTEGRITY
Factoring (also known as debtors finance and accounts receivable finance)
Factoring is when a factor company buys a business' outstanding invoices at a discount. The factor company then chases up the debtors. Factoring is a way to get quick access to cash, but can be more expensive compared to traditional financing options.
Invoice finance is offered based on the strength of a business' accounts receivable. This form of financing is similar to factoring, except that the invoices or accounts receivables remain with the business.