Factoring (finance)

Factoring is selling rights to the future payments.[1] People and companies that are receiving money from contracts every some time may be in need of extra money - so they sell rights to receive those payments for cash hence Factoring. This is done especially in construction business where companies are paid for parts of work completed instead of upfront payment. Such a company will sell future payments for small percentage fee and will receive all money they need to continue the work without delays.

The structured settlement factoring transaction can be really helpful for business in financial needs.[2] It provides business with better financing and more funds on hands in exchange for small percentage of total sum.

Some banks are entering field of Factoring trying to provide same service advertised by well known names.[3]

  • references

References

  1. J. Downes, J.E. Goodman, "Dictionary of Finance & Investment Terms", Baron's Financial Guides, 2003. Taken from a combination of the definitions of a financial asset and accounts receivable
  2. http://www.ifgnetwork.com/ The Interface Financial Group
  3. http://www.britannica.com/EBchecked/topic/200045/factoring
Other Languages
العربية: تخصيم
azərbaycanca: Faktorinq
беларуская: Фактарынг
беларуская (тарашкевіца)‎: Фактарынг
български: Факторинг
català: Facturatge
čeština: Faktoring
Deutsch: Factoring
eesti: Faktooring
español: Factoraje
فارسی: فکتورینگ
français: Affacturage
한국어: 채권매입업
Հայերեն: Ֆակտորինգ
Bahasa Indonesia: Anjak piutang
italiano: Factoring
қазақша: Факторинг
lietuvių: Faktoringas
magyar: Faktoring
македонски: Факторинг
Nederlands: Factoring
norsk: Factoring
norsk nynorsk: Factoring
polski: Faktoring
português: Fomento mercantil
română: Factoring
русский: Факторинг
slovenčina: Faktoring
svenska: Factoring
Türkçe: Faktoring
українська: Факторинг
Tiếng Việt: Bao thanh toán