Glossary
Bank Overdraft - An
alternative to factoring without the credit management
services.
Credit Insurance - Insurance in case
your customer fails to pay the invoice. You receive
payments for your bad debts up to pre determined limits.
Factoring - Instant cash upon issuing
invoices and sales ledger and collection services.
Invoice Discounting - . Instant cash
upon issuing invoices without sales ledger and collection
services.
Invoice Finance - Another phrase for
factoring and invoice discounting.
Non-recourse Factoring - If your customer
fails to pay the invoice, the factor will pay you. You
pay an additional charge to cover the credit insurance
costs.
Recourse Factoring - If your customer
fails to pay the invoice, the factor will look to you
for reimbursement of any amounts advanced against the
invoice. The service excludes bad debt protection.
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Invoice
Factoring Guide
