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Return To Factoring FAQ Archive   Is factoring a type of loan? Answered By Editor Factoring is not a type of loan. When you factor your accounts receivable you sell your rights to those invoices. The buyer takes responsibility for the collection. In return, the buyer will pay up front for the invoices. The buyer will pay less than the full value of the invoices. Once the sale is made, you no longer have any responsibility to collect the balance of the accounts. You do not have to repay the buyer. They will be repaid by collecting the balances due. keywords: Factoring | Invoice Discounting | Accounts Receivables | Accounts Receivable Factoring | Cash Flow | Loan | Debt Collection General Working Capital Loan Commercial Financing

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