Factoring is one of the oldest methods of financing and collection. In short, it means the transfer/assigning of receivables.

It is the transfer of the receivables of a business enterprise selling goods or services to the “Factor” company. Factoring transactions basically enable you to meet your responsibilities speedily as well as providing financing for the healthy growth of your company. If there is a cash crunch, it becomes difficult to grow a business. Factoring converts your sales into cash and facilitates stable growth.

In factoring, making use of advance payments by transferring receivables on credit terms is a very much preferred method; however collections only or warranty functions are also commonly used.

As the most widespread financing management system around the world after banking, factoring is an effective financial choice for all sizes of businesses at growth stage; both for corporate companies as well as all entrepreneurs doing business on credit terms.