When a company sells its invoices to a factoring company, it typically receives 70% to 95% of the total invoice value—known as the advance rate. Then, the factoring company will collect payment ...

The factoring company agrees to buy your invoice and advance you 85% of the total value, or $8,500. ... You remain responsible for collecting payment on your invoices.

a type of payment made to a seller by a buyer before delivering the goods involved. Sellers usually use it to protect themselves from the possibility of non-payment or payment delays after they have ...