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.
Solving algebraic equations and simplifying algebraic expressions, often requires one to use a method called factoring. This method allows one to transform expressions into multiplications. A general example can be given by the addition of two constants. The expression 2 + 6 can be written as the multiplication 2(1+3).
Use of SPECIAL-PURPOSE VEHICLES Another basic difference between factoring and securitization is that, while a factor typically purchases receivables directly onto its book, a receivable securitization generally employs a 2-step sale methodology wherein the receivables portfolio is first sold into a separately ...
What is international factoring? International factoring is the process of purchasing an invoice from an exporter in one country and collecting it later from his buyer/importer located in another country.