Best Best Reviews

Review:

Factoring

overall review score: 4.2
score is between 0 and 5
Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount.

Key Features

  • Provides immediate cash flow
  • Reduces risk of bad debts
  • Can improve credit rating

Pros

  • Helps businesses improve cash flow
  • Reduces the burden of collecting payments from customers
  • Can be a useful tool for businesses with seasonal fluctuations in cash flow

Cons

  • Cost of factoring fees can be high
  • Loss of control over customer relationships

External Links

Related Items

Last updated: Sat, Feb 1, 2025, 10:37:16 AM UTC