What is Factoring?

Factoring is a financial transaction 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, or freight factoring. There are three parties involved: the factor: who purchases the receivables (us), the client: who sells the receivables (you), and the debtor: who has the financial liability (often the broker). The use of factoring is helpful by generating immediate cash- allowing you to focus on growing your company, not about getting paid. 

Factoring helps to remove risks like the hassle of billing and collecting. Partnering with PDM Financial can reduce the stress of dealing with cash flow issues, and can strengthen relationships with customers by simplifying the payment process. Factoring can help you to pay your vendors faster and 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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