Financial Services Glossary
The 'language of finance' can be daunting. We therefore thought that a simple explanation of many of the terms might be helpful, so here goes!
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A financial service which allows a company to sell or transfer title to its accounts receivable (invoices) to a Factoring company at a discounted rate. The Factoring company then becomes the principle rather than an agent. Because of this the Factor does not have any recourse to the seller should the customer default on payment (except in the case where the terms of the contract of sale are not fulfilled).