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Glossary / Also known as

Factoring

Another name for Invoice Factoring.

Other names
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What does factoring mean?

Factoring is another name for Invoice Factoring. Invoice factoring is a financial arrangement where a business sells its outstanding invoices to a third party (factor) at a discount in exchange for immediate cash.

The two names mean the same thing. You will see "factoring" in some ledgers, reports and contracts and "Invoice Factoring" in others. The full entry covers how it works, with examples.

Read the full definition of Invoice Factoring

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From the glossary

Related terms.

Working capital Invoice Factoring Invoice factoring is a financial arrangement where a business sells its outstanding invoices to a third party (factor) at a discount in exchange for immediate cash. Also called factoring, receivables factoring Accounts payable Accounts Payable (AP) Money a business owes to its suppliers and vendors for goods or services received but not yet paid for. Also called trade payables, sundry creditors, payables Invoice processing Invoice Management The end-to-end process of creating, receiving, tracking, approving, and processing invoices for timely payments and accurate financial records. Also called invoice processing, invoice handling, invoice workflow MSME payments MSME (Micro, Small and Medium Enterprises) A government classification for businesses based on investment and turnover that enables access to subsidies, priority lending, and special schemes. Also called micro and small enterprises, Udyam registered enterprise, MSE Financial reporting Balance Sheet A financial statement that presents a company's total assets, liabilities, and shareholders' equity at a specific point in time. Also called statement of financial position, statement of assets and liabilities Collections and DSO Days Sales Outstanding (DSO) Days Sales Outstanding measures the average number of days a business takes to collect payment after a sale, indicating the efficiency of its accounts receivable process. Also called debtor days, average collection period, receivable days
From the blog

Related posts.

AR What is DSO? Days Sales Outstanding Formula and Example DSO (days sales outstanding) is the average number of days a business takes to collect payment after a credit sale. See the formula, example and how to cut it. OneFinOps Editorial 3 min AP Accounts Payable Process: Steps, Flow Chart and Controls The accounts payable process runs from purchase order to payment: receive the invoice, match it, book it with GST and TDS, approve, pay and reconcile. Dhatri Medarametla 3 min AP What is Accounts Payable? Meaning, Examples and AP vs AR Accounts payable is the money a business owes suppliers for goods or services received but not yet paid. See the meaning, AP vs AR and the journal entry. Dhatri Medarametla 3 min
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