Definition of Factoring
Factoring is a procedure in which a firm can sell its accounts receivable invoices to a factoring firm, which pays a percentage of the invoices immediately.
Many business owners factor receivables to improve their cash flow. However, factoring comes at a price and it should only be considered after a thorough evaluation of all available financing mechanisms.
Factoring References On This Site
These Gaebler.com articles mention this glossary term: