Search:

Types of factoring or invoice discounting

The main services are described below using 'traditional' industry terminology which the majority of factors and invoice discounters use, and in any event, will all recognise. It should be noted that services differ slightly between invoice financiers. Services provided by factors are many and varied. The basic ingredients for these services are as follows:
With or without bad debt protection (recourse or non-recourse);
With or without disclosure to customers (non-confidential or confidential);
Where collection of debts is undertaken by the factor or by the client on behalf of the factor;
Agreements which provide for the assignment of all debts as they arise (whole turnover) or which provide for each debt to be offered to the factor (facultative).
The situation is further complicated by inconsistency in the labelling used by factors for their various types of services.
In recognition of the difficulty that many businesses encounter with much of the terminology surrounding receivables finance, some factors are now avoiding the use of the terms 'factoring' and 'invoice discounting' and prefer invoice finance.
Factoring can ease cash-flow problems and provide some predictability in a rapidly changing situation. Factoring can also increase the availability of working capital and alleviate cash-flow problems when a company takes on new customers; gains new customers; experiences a slowdown in collections; has increases in bad-debt levels; has heavy capital investment program or just needs to cover unforeseen cash requirement. Factoring would be their to help.
An acquisition, for example, can expose the firm to a new and unfamiliar customer base, thereby creating a need for enhanced factoring receivables management and that is where factoring can help. And since granting trade credit is comparable to making an investment in another company, a factoring companies credit protection helps prevent unsound investment decisions.

Article Source: http://www.articlemarketing.org

This actual was written by and released by factoringcompare.com, factoring and invoice discounting specialists. factoringcompare.com . are totally independent finance factoring and invoice discounting brokers, advisors and have access to an unrivalled panel of leading UK factoring and invoice discounting lenders to get you the best finance deal. This means that Please Rate this Article

Not yet Rated

Click the XML Icon Above to Receive Finance Articles Via RSS!

Additional Articles From - Home | Finance

	Print This Article
	Post Comment
	Add To Favorites
	Email to Friends
	Ezine Ready

Submit Articles
Member Login
Top Authors
Most Popular Articles
Submission Guidelines
Ezine Notifications
Article RSS Feeds

New Stuff
About Us
Link to Us
Contact Us
Privacy Policy
Terms of Service

Safe Email Advertising
Quick, safe & cost effective way to send your exclusive email advertisement to 1 million or more targeted people. Choose from 70 different categories. Starts at only $60.

Web Site Promotion...
Internet Marketing
Web Linking
Targeted Traffic
Blog Marketing
Do-It-Yourself Linking
Search Engine Marketing Traffic Pack

Other Directories & Resources
Majon Articles
Shopping Directory
Free Lost Directory
Seo Friendly Directory
Free Web Directory
Get Website Content
WebTrafficBuilder Pack