Factoring Dictionary

• Factor: Institution which provides each, both or all of the following services: collection and management of receivables, prepayment and pre-financing of receivables, assuming and guaranteeing the risk of non-payment.
• Customer: Entity who reaches agreement with factor, and benefits from services provided by the latter.
• Buyer: Party to whom invoices are sent by seller(customer) against goods or services received, and is liable for payment of the bills.