// definition
Factoring
Receivables finance and collection
Short definition
A contract under which a business entrusts its receivables to a specialist institution that may provide financing and manage collection for a fee. The advance, charges and allocation of non-payment risk depend on the contract.
risk atlas
Knowledge map
Intuition
Turning an invoice into an advance brings forward cash while creating contractual costs and conditions.
Related analyses
- Greensill: lending before the invoice existsFuture receivables and conditions of insurance.
- Radiant World: disputed receivablesThe debt, its outstanding balance and the funder’s payment rights.
Primary sources
- International Trade AdministrationExport Factoring chapter: purchasing short-term receivables and allocating risks by contract.
- BCEAO / COFEBInstitutional explanation of factoring.