Factoring Company- Glossary > Factoring Terms > Discount Factoring

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Discount Factoring refers to an arrangement whereby a factor purchases an account(s) receivable from a business at a discount to the face value of that receivable. The factor earns a fee based on the number of days that the receivable remains unpaid, i.e., the longer the receivable remains unpaid, the larger the fee incurred.

Last updated on September 26, 2009 by FACTOR KING, LLC