accounts receivable factoring

Fin
the buying of accounts receivable at a discount with the aim of making a profit from collecting them

The ultimate business dictionary. 2015.

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  • Accounts receivable — (A/R) is one of a series of accounting transactions dealing with the billing of customers who owe money to a person, company or organization for goods and services that have been provided to the customer. In most business entities this is… …   Wikipedia

  • Accounts Receivable Financing — A type of asset financing arrangement in which a company uses its receivables which is money owed by customers as collateral in a financing agreement. The company receives an amount that is equal to a reduced value of the receivables pledged. The …   Investment dictionary

  • accounts receivable financing — A short term financing method in which accounts receivable are collateral for cash advances. Bloomberg Financial Dictionary See: factoring. Bloomberg Financial Dictionary …   Financial and business terms

  • Accounts Receivable (A/R) Discounted — Outstanding invoices representing money owed to a creditor which the firm/creditor sells to a buyer for less than face value, typically to quickly raise capital and improve cash flow. The buying firm also referred to as a “factor”… …   Investment dictionary

  • Assignment Of Accounts Receivable — A lending agreement, often long term, between a borrowing company and a lending institution whereby the borrower assigns specific customer accounts that owe money (accounts receivable) to the lending institution. In exchange for assignment of… …   Investment dictionary

  • factoring — fac·tor·ing n: the purchasing of accounts receivable from a business by a factor who assumes the risk of loss in return for some agreed discount Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. factoring …   Law dictionary

  • Factoring (finance) — This article is about finance. For other uses, see Factor (disambiguation). Corporate finance …   Wikipedia

  • factoring — /fak teuhr ing/, n. 1. Com. the business of purchasing and collecting accounts receivable or of advancing cash on the basis of accounts receivable. 2. the act or process of separating an equation, formula, cryptogram, etc., into its component… …   Universalium

  • factoring — The sale of *accounts receivable to a *third party, known as a factor. A factor purchases accounts receivable at a discount to their total value, and assumes responsibility for collection and *credit risks. The advantages of factoring for the… …   Auditor's dictionary

  • factoring — involves the cash purchase of a business sales invoices at a discount, after which, the factoring company collects the invoiced amounts from the business customers. Factoring is used where the business needs immediate cash. Glossary of Business… …   Financial and business terms

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