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What does Factoring mean?

A financial transaction whereby a business sells its accounts receivable (invoices) to a third party (called a factor) at a discount.

Factoring in a sentence
Our company uses factoring to improve cash flow by selling its accounts receivables to a third party.

Factoring in German, French, Spanish and Italian

German
Factoring
also Forderungsverkauf

Dient der sofortigen Liquiditätssicherung durch Verkauf von Forderungen.

French
Affacturage

Technique de financement pour obtenir des liquidités immédiates.

Spanish
Factoraje

Venta de facturas pendientes de cobro para obtener efectivo.

Italian
Factoring

Cessione di crediti commerciali a una società specializzata.

Common phrases with Factoring

  • use factoring
  • offer factoring
  • provide factoring

Synonyms and opposites for Factoring

  • Synonym Invoice Discounting

More Business Law terms

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Factoring is filed under