Home » Business Invoice Factoring
Factoring is a form of financing in which a business sells its receivables to a third party or “factor company” at a discounted price.Under this arrangement,the factor agreed to provide finacing and other other services to the selling Business in return for interest and fees on the money that they advanced against receivables invoices.
Business in need of cash can thus secure up to 80 percent of the receivables face Value(a higher percentage can sometimes be secured,but in most instances 20 percent is hold in reserve until the account balances are paid off) Factoring is a favourite capital raising choice for small business owners.
