TERMIUM Plus^®

Record 1,  Textual support,  English

Record number: 1, Textual support number: 1 DEF

The sale by a business of its book debts to a factoring company, who will pay the business the face value of the total of the invoices, less a discount which will take into consideration: the fee, interest rates appertaining at the time, risk of non-payment, etc. The seller of the invoices will do so in order to improve his cash flow. The factoring company, will not necessarily offer any other service, such as guarantee of bad debts, sales ledger accounting, etc. [Klein, Gerald. Dictionary of Banking. Pitman Publishing, 1995].  2, record 1, English, - invoice%20discounting

Record number: 1, Textual support number: 1 CONT

Invoice discounting is a working capital facility which provides immediate finance (prepayment) of up to 80% of funds tied up in unpaid debtor invoices, the balance is paid (less costs) as the debtor collections are received. In short invoice discounting is an acceleration of cash flow.  3, record 1, English, - invoice%20discounting

Record 1,  Textual support,  French

Record 1,  Textual support,  Spanish