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  #   002-038 - Introduction To Factoring

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  Factoring is a method of financing a business operation. Money is raised on one of the key assets of the small/medium enterprise - Sundry Debtors. The paper explains the factoring company makes an advance against individual debtor's invoices, normally within forty-eight hours of the invoices being ...[Read more](#hikashop_show_tabular_description)

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 Factoring is a method of financing a business operation. Money is raised on one of the key assets of the small/medium enterprise - Sundry Debtors.

The paper explains the factoring company makes an advance against individual debtor's invoices, normally within forty-eight hours of the invoices being presented to the factoring company. A fee is charged for this - but the real benefit is that the SME has the use of cash for a considerable period of time earlier than what would have happened if the business has waited for its customer to make payment - say in 65 days time.

The paper analyses the benefits and costs of factoring under the following headings:

- What Is Factoring?
- Factoring Overview
- How Does Factoring Work?
- "Alternative Method Of Factoring"
- Benefits Of Factoring
- What Do You Do With The Money?
- Using Key Asset On The Balance Sheet/Sundry Debtors
- Acceptance Of Factoring
- Factoring Is Large Business
- Information Required By Factorer