What is Invoice Factoring?
Invoice Factoring is defined as "the purchase of accounts receivables at a discounted price. It is a alternative and popular method of financing for many companies. The term factor in Latin means "he who gets things done" and that is exactly what invoice factoring does.
Where did it all start?
Invoice factoring is used all around the world. It can be traced back to the early days of civilization, starting in North Africa and Egypt. Its been used in America since the moment the pilgrims started their voyage to America on the Mayflower through factoring.
How is it Used Today?
Now a days invoice factoring is a company(you) selling your accounts receivable at a discounted price to a factor(us). The invoice amount then falls to the factor company. Thus, letting you avoid 30, 60, or even 90 days before a invoice is paid.