Selling accounts receivable to obtain short term funds is called accounts receivable factoring

Many companies sell their accounts receivable to obtain short terms funds also known as accounts receivable factoring. Buffet Factoring offers short term funds at competitive discounts.

Accounts receivable factoring terms

  • Factoring Company purchases outstanding invoices at a discount
  • Client is the company that invoices the customer for products or services
  • Customer/Debtor is the company liable to pay for the products or services.

What are accounts receivable financing?

Accounts receivable financing is a type of asset financing companies use to obtain short term funding. A companies invoices or money owed by the customer/debtor is used as collateral in an finance agreement. The agreement is created by the factoring company. In the agreement, the factor buys the invoices at a discount and waits for the customer/debtor to pay the factoring company.

The factor agrees to buy the invoices at a discount and

Money owed to you by your customers are sold at a discount to Buffet Factoring to pride funds until the customer sends payment.