Factoring.com

This site was designed to give you a complete understanding of factoring.

In short, factoring is a financial transaction in which a business sells its accounts receivable (its invoices) to a third party (called a factor) at a discount in exchange for immediate money with which to finance continued business.

In these uncertain financial times, you can understand the necessity of factoring, as the credit crunch has hit businesses of every size. And, as in any down cycle, there are certain people and business’ trying to take advantage, and do not have your best interest at heart. Look out for the scams!

Factoring, or as it is often called, accounts receivable financing has been around as long as commerce, but it is now becoming more popular, as banks tighten their belts and make it harder for small and medium business’ to borrow money.

Accounts receivable financing is a simple method to increase the cash flow for your business. By allowing the factor to pay your invoices, your business has cash flow to meet payroll, buy inventory, or invest in research and development.

We are hoping you use this web site to get a better understanding of factoring and help you make an informed decision when choosing a factoring company.


Great Video on Factoring from Marketplace.org