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From Longman Business Dictionary
Related topics: Finance
factoringfac‧tor‧ing /ˈfæktərɪŋ/ (also debt factoring, invoice factoring) noun [uncountable] FINANCE when a financial institution called a FACTOR takes over the administration of a company’s RECEIVABLES (=money owed by suppliers). The factor pays the business the money that suppliers owe to it immediately, in return for a percentage. The business benefits by getting the money immediately, improving its CASH FLOW. Invoice factoring is a form of finance that can be cheaper than bank loans or OVERDRAFTsWith invoice factoring, we provide an immediate advance of up to 80% of the value of invoices.Thefactoring companies have been heartened by signs of increased demand after a difficult year. export factoring