UNDERSTANDING THE BASICS OF INVOICE FACTORING Before diving into the process of invoice factoring, it’s important to have a clear understanding of what it actually entails. Simply put, invoice factoring involves selling your accounts receivable (invoices) to a thirdparty financial company, known as a factor, at a discounted rate. The factor then becomes responsible for collecting payment from your customers. DEFINITION OF INVOICE FACTORING Invoice factoring is a financial transaction in which a business sells its invoices to a third Finance Monthly. Business 41
RkJQdWJsaXNoZXIy Mjk3Mzkz