Accounts Receivable Factoring


Definition: Accounts Receivable Factoring is obtaining funds by selling a company's accounts receivable. Normally, the company that "sells" its accounts receivable receives less than the full amount for the money owed on the accounts.
The main benefit of this approach is that the funds are obtained now rather than later.



More on accounts receivable factoring.
More on financial management: Credit Management, Credit Rating, Customer Profitability Analysis, Debt Settlement, Investor Relations, more...


MBA Brief offers brief, yet very accurate definitions of MBA concepts, frameworks, methods and models. We keep it short and provide some links in case you'd like to learn more around a subject.

© 2021 MBA Brief - Last updated: 22-1-2021  -  Privacy   |   Terms