the business of purchasing debts from clients at a discount and making a profit from their collection
factoring in Finance
(fæktərɪŋ)
noun
(Finance: General)
Factoring is the act of selling the right to collect receivables for a percentage of their value.
The provision of credit by making loans and purchasing accounts receivable at a discountis known as factoring.
The factoring firm pays a percentage of the invoices immediately, and the remainder when the accountsreceivable are actually paid off by the firm's customers.
Factoring is the act of selling the right to collect receivables for a percentage of theirvalue.
Examples of 'factoring' in a sentence
factoring
Borrowing against the asset of an invoice is referred to as invoice factoring, or discounting.
Times, Sunday Times (2015)
A company he had been using to do invoice factoring had gone into receivership, owing him millions.
Times, Sunday Times (2008)
Although some of these perks are worth factoring in, the most important consideration is the interest-free overdraft allowance.