• Factoring Company Definition

    Our factoring company definition is explained.

    This page is designed to give easy access to those seeking factoring companies.

    Factoring Company Definition

    This is our factoring company definition:

    "A factoring company is an organisation that offers debt factoring services to businesses.
    Debt factoring is the combination of a prepayment against an unpaid sales invoice that was raised on credit terms, and the provision of a credit control service to collect, or assist with collection of the invoice."

    The service can be provided against a single invoice (called "selective" or "spot"), or the full sales ledger of outstanding invoices.

    Product Types

    The word factoring does not describe a single type of service. There are numerous product types that fall under that umbrella terms. You can find a full list of all the different types of factoring in our article. It fall within a category of products referred to as "invoice finance" or "receivables finance". These terms also include services where no credit control is provided by the funder, those are called "invoice discounting" services. It should be noted that people sometimes use the terms interchangeably.

    Factors

    The companies providing these services are also commonly referred to as "factors". On this site you will find a full list of all the factors in the UK, and links to lists of those based abroad. Most providers will offer a full range of invoice finance services, rather than just the single service, although some offer only selective or only full sales ledger services.

    There are also differences in the types of provider. Some are parts of major high-street banks; some are large independent companies and there are also smaller independent providers. The exact nature of the service that you receive will vary from provider, to provider - as will the cost. We have found huge swings in cost of 165% between the cheapest and most expensive factors in some cases.

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Examples of just a few of our finance partners:

investeccapitalsolutions
lloyds bank
bibby
time finance
ifg
ultimate finance group