Factoring (Invoice Finance)
Up to 90%* financed value of customer invoices. Factoring (Invoice Financing) is when a supplier borrows money from a third-party financial company called a “factor” by selling its invoices (receivables from customers) at a discounted rate and paying a percentage of the invoice amount to the lender as fee for borrowing money.
Two types of Invoice Financing:
A. NOTIFIED
The customer or company to whom the invoice was issued is informed of the invoice sale and required to make payments to the factor doing the collection.
B. NON-NOTIFIED
The customer or company to whom the invoice was issued is informed of the invoice sale and required to make payments to the factor doing the collection.