Factoring and invoice discounting

This note looks at factoring and invoice discounting as ways of raising short term finance, highlighting the advantages and disadvantages of both and considering the key terms in factoring and invoice discounting agreements. This note also briefly considers issues relating to taking security over book debts and priority arrangements with other creditors, such as banks.

This note links to a multi-jurisdictional guide to finance, which includes issues relating to various types of commercial security, including factoring.

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