It is a short term loan that is secured by the company’s assets such as inventory, real estate, equipment or accounts receivable. Most are paid back when the asset that secures the loan is converted t [..]

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Money that is owed to you by your customers, usually by issuing an invoice that is due to be paid within a certain period of time. 

This is the amount of money that the factoring company advances to your company when they buy the invoice. The advance is often a percentage of the gross value of the invoice and is wired shortly afte [..]

The percentage of the invoice that will be advanced.  On average, most factors advance between 70% and 85% of the gross value of the invoice.

A review carried out by to ensure that the conditions of the factoring agreement are being met.

Bad Debt:

Payments that the factor receives for invoices that were factored or by invoices that flow through their lock-box system.

The level for which a factor will fund a single customer in your portfolio. This is usually expressed as a percentage. Done as a risk management measure to ensure that a single account does not repres [..]

This occurs when two companies are customers and suppliers of each other. Financing these types of accounts are difficult.