Arrangement whereby a factor purchases an account(s) receivable from a business (your client) at a discount to the face value of that receivable. The factor earns a fee based on the number of days that the receivable remains unpaid, i.e., the longer the receivable remains unpaid, the larger the fee incurred.
Other terms explained in the Business Loans Glossary
Business Loans Glossary: Discount Factoring
Business Loans Glossary: Discount Factoring
YES
NO
Main Page
Article Id: 68 - Version: 3 - Created: 25-02-2008 - Last Updated: 26-03-2008 - Hits: 436
Categories: Glossary
Related Items
Comments
No comments yet!