Advance Factoring and Discount Factoring | Practical Law

Advance Factoring and Discount Factoring | Practical Law

A Practice Note covering advance factoring and discount factoring, facilities that are often included in maturity factoring and collection factoring arrangements to provide the client extra liquidity. This Note discusses the terms of advance and discount factoring facilities, the mechanics of these facilities including the flow of funds, advance rates and how they are determined, security arrangements, and the factor's recourse against its client.

Advance Factoring and Discount Factoring

Practical Law Practice Note w-041-0140 (Approx. 10 pages)

Advance Factoring and Discount Factoring

by Practical Law Finance
MaintainedUSA (National/Federal)
A Practice Note covering advance factoring and discount factoring, facilities that are often included in maturity factoring and collection factoring arrangements to provide the client extra liquidity. This Note discusses the terms of advance and discount factoring facilities, the mechanics of these facilities including the flow of funds, advance rates and how they are determined, security arrangements, and the factor's recourse against its client.