Accounts Receivable Financing

Accounts Receivable Financing

Accounts Receivable Financing a.k.a. factoring or invoice discounting in many countries is a mode of financing in which companies sell their unpaid invoices (accounts receivable) to third party financial institutions at a discount in return for cash. The discount factor is in effect the financing cost for companies that want to recognise cash nowtoday against future receivables.

logo-animationlogo-animationlogo-animation

Related terms