Factoring (See Chapters 27 and 47 of the Vernimmen) Factoring, one of the off-balance sheet financing techniques, is a credit transaction whereby a company holding an outstanding commercial bill of exchange transfers it to its bank or a specialised financial institution in exchange for the payment of the bill, less interest and commissions & fees. Factoring companies, also called factors, specialise in mobilising a part of the receivables, which they discount (see discounting of bills of exchange) or buy. These companies handle the recovery of bad debts in exchange for a commission. Factoring is the discounting of bills of exchange packaged with one of four services: financing at a competitive cost; outsourcing of the recovery function; bad debt insurance; removal of assets from the balance sheet. Depending on the type of service rendered, the receivable may or may not remain on the balance sheet of the company. Factoring (See Chapters 27 and 47 of the Vernimmen) Factoring, one of the off-balance sheet financing techniques, is a credit transaction whereby a company holding an outstanding commercial bill of exchange transfers it to its bank or a specialised financial institution in exchange for the payment of the bill, less interest and commissions & fees. Factoring companies, also called factors, specialise in mobilising a part of the receivables, which they discount (see discounting of bills of exchange) or buy. These companies handle the recovery of bad debts in exchange for a commission. Factoring is the discounting of bills of exchange packaged with one of four services: financing at a competitive cost; outsourcing of the recovery function; bad debt insurance; removal of assets from the balance sheet. Depending on the type of service rendered, the receivable may or may not remain on the balance sheet of the company. See all terms in the dictionary of finance To know more about it, look at what we have already written on this subject :

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Definitions of terms begining with the same letter as "Factoring" :

FCFF FFO FIFO, First in, first out FRA Face value Facility fee Factor Factoring Fairness opinion Fallen angels Fama-French model Family-owned company Finance lease Financial analysis Financial analysis techniques Financial analyst Financial assets Financial breakeven Financial buyer Financial communication Financial cost Financial currency risk Financial distress Financial distress cost Financial expense Financial income Financial interest rate risk

Financial investor Financial leverage Financial leverage - dynamic Financial loan Financial resources Financial risk Financial risk management Financial security Financial structure Financial sweetener Financial synergy Financial system Financing cycle Firm underwriting Firm value First in, first out First mover advantage Fisher formula Fixed assets Fixed costs Fixed income securities Fixed-price offering Fixed-rate debt security Floating-rate debt security Floor Floor plan loan Flow-back

Foreign bond Foreign currency advances Foreign currency hedging Foreign exchange gains and losses Foreign exchange risk Forward currency transaction Forward exchange rate Forward rate agreement, FRA Forward transaction Forward-forward rate Free cash flow Free cash flow Free cash flow to the firm, FCFF Free float Free float factor Free rider Free share Friendly offer Full commitment Full consolidation Fully-diluted EPS Fundamental analysis Fundamental valuation method Funds from operation ( FFO) Fungibility Future