What Is…
What Is Credit Factoring?
Credit factoring is simply another name for invoice factoring, and is a type of financing that allows business owners to receive up to 100% of their invoice value as soon as they are issued rather than waiting for the full payment terms.
This helpfully frees up cash and improves cash flow for other areas of the business.
Instead of allowing the full payment terms of the invoice to lapse before receiving payment – which can be as long as 120 days – factoring your invoices means you can work with the cash right away.
If you’d like to learn more about invoice factoring, we have a more in depth article here.
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