What Is Factoring?
Overview of factoring:
How Does Factoring Help My Business?
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:
Ready to Get Started?
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.