Accounts Receivable Factoring

Knowledge Center

12manage is looking for students / contributors...


Description of Accounts Receivable Factoring. Explanation.


  1. Summary
  2. Forum
  3. Best Practices
  4. Expert Tips
  5. Resources
  6. Print

Definition Accounts Receivable Factoring. Description.

Accounts Receivable Factoring is obtaining funds by selling a company's accounts receivable. Normally, the company that "sells" its accounts receivable receives less than the full amount for the money owed on the accounts.

The main benefit of this approach is that the funds are obtained now rather than later. This benefits the Working Capital. Additionally credit risk is eliminated and the company management can focus on the business issues rather than on collecting payments.

In factoring, the most important risk assessment is in determining the creditworthiness of the debtors, not the seller. Thus, factoring can be offered to companies without strong credit or companies that do not meet traditional bank lending requirements. It can also be useful for seasonal businesses, international transactions, and any situation where non-debt financing is preferred.

Accounts Receivable Factoring Forum
  Quotes on Factoring. Quotations
Hi, do you know of a remarkable, humorous quote by...

Accounts Receivable Factoring Special Interest Group

Special Interest Group


Best Practices - Accounts Receivable Factoring Premium

Expert Tips - Accounts Receivable Factoring Premium

Resources - Accounts Receivable Factoring Premium

News about Accounts Receivable FactoringSign up


Videos about Accounts Receivable FactoringSign up


Presentations about Accounts Receivable FactoringSign up


Books about Accounts Receivable FactoringSign up


More about Accounts Receivable FactoringSign up


Compare with: Accounts Receivables Financing  |  Debt Restructuring  |  Quick Ratio  |  Recapitalization  |  Undercapitalization  |  Working Capital  |  Sale and Leaseback

Special Interest Group Leader

You here


Return to Management Hub: Finance & Investing

More on Management  |  Return to Management Dictionary  | 


This ends our Accounts Receivable Factoring summary and forum.

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2018 12manage - The Executive Fast Track. V14.1 - Last updated: 14-8-2018. All names of their owners.