One of the oldest forms of business finance; Factoring is technically not a loan. A third party, known as a factor, purchases a company’s invoice(s) or purchase order(s) at a discount giving a business owner access to a percentage of that invoice or purchase order now, instead of when the invoice or P.O. is paid. The balance minus the agreed upon discount, is paid to the business owner once collected by the factor. To learn more about factoring, read our Guide to Factoring.
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