Factoring - Definition

A Process quite common in debt management by financial institutions in the lending business, factoring is the selling of a company's Accounts receivable, at a discount, to a factor, who then assumes the Credit Risk of the account debtors and receives cash as the debtors settle their accounts. also called accounts receivable financing. After the 2008 financial crisis which started with the bust in the housing market, many banks and financial institutions have sold their credit card and Mortgage portfolios as part of their credit risk reduction process. Factoring has Continued into 2011.

Terms near "Factoring"

Factors of production

Factory gate price

Factory Orders

Facultative reinsurance

FAD multiple

Fail position

Fair market value

Fair market value lease

Fair price

Fair price provision