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Dictionary by pitch.dog
Debt, credit & capital structure · Core

Factoring

Also called: invoice factoring

ELI5

Sale or assignment of receivables to a finance provider, with structures varying in recourse and service.

Used in conversation

“State the period, currency and accounting basis for factoring.”

Pitch context

You will see “Factoring” in financial models, budgets, board packs and investor materials when the discussion reaches debt, credit & capital structure.

Why it matters: In debt, credit & capital structure, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

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Sources & evidence · 5

Direct term-level sources and supporting source families.