A Practice Note about a type of trade finance called factoring. This Note discusses non-recourse and recourse factoring; the services that a factor provides its client, including credit protection, bookkeeping, financing, and credit checks on the client's customers; and different types of factoring such as maturity, collection, advance, and discount factoring. It also discusses factoring agreements and issues to consider in negotiating a factoring agreement, as well as the transaction documents and deliverables required to close a factoring transaction.