Understand the definition of factoring services and their role in enhancing cash flow for businesses in the Indian market. Factoring services refer to the practice of selling accounts receivable to a financial institution for immediate liquidity, enabling businesses to meet operational needs and pursue growth opportunities without waiting for customer payments.
Factor’ has been derived from the Latin word ‘Facere’ which means ‘to make or to do’. According to Webster's Dictionary, ‘Factor’1 is an agent, as a banking or insurance company, engaged in financing the operations of certain companies or in…
