DEFINE FACTORING OF RECEIVABLE.

Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount

1. Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount. A Business will sometimes Factor itsReceivable Assets to meet its present and immediate Cash needs.