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Factoring is a financial transaction and type of debtor finance in which a business sells its accounts receivable (i.e. invoices) to a third party (called a factor) at a discount. Factoring is also commonly known as accounts receivable factoring, invoice factoring, and sometimes accounts receivable financing.

There are three parties directly involved: the factor who purchases the receivable (us), the one who sells the receivable (you), and the debtor who has a financial liability. The use of factoring to obtain the resources needed to accommodate a firm's immediate cash needs will allow the firm to maintain a smaller ongoing cash balance. This leaves more money available for investment in the firm's growth instead.

Factoring helps to remove the risk and hassle of billing and collecting. Partnering with PDM Financial can reduce the stress and worry of dealing with cash flow issues, and can strengthen relationships with customers by removing the financial and payment processes from the equation. Factoring can help you to pay your vendors with a faster turnaround to take advantage of potential discounts and savings.

Improve your cash flow, reduce your headaches, and meet current operating costs without incurring debt with PDM Financial factoring solutions.

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PDM Financial Blog


The hidden value of invoice factoring
Posted by Troy in PDM Financial Blog on 10/30/2018
For many small companies, the time comes when they can’t handle the business side of the operation themselves. Fortunately, there is plenty of help available, from low-cost software programs that can speed business-side processes, to the other extreme – hiring office personnel to handle tasks such as billing and payroll.
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