What is Factoring?

Factoring is the sale of accounts receivable or invoices at a small discount to obtain immediate cash. Factoring give businesses the ability to ensure growth without diluting equity or incurring debt.  
The main difference between factoring and a bank loan is with factoring the credit strength of the debtor (the client's customer) not the credit strength of the client is used as support for funding. As a consequence, growth and the availablility of funds is not limited by the client's assets, equity or profitability.
Not all factoring companies are made the same.