What Is Factoring?
In factoring, there are typically three parties involved:
• The Factor (the company purchasing the invoice)
• The Client (the company selling the invoice)
• The Debtor (the company whose invoice is being sold)
Without factoring, the cash flow for a company may look like:
When utilizing factoring, the cash conversion is shortened significantly, freeing up cash and allowing the supplier or client to purchase inventory, pay employees, fund growth, etc:
Read more to find out if factoring is right for your company or contact us today to start financing your own business through the Southern Bank’s customized factoring program.