Factoring (accounts receivable funding)
In factoring, a firm converts its accounts receivable into cash by turning them over to a credit institu-tion/financing company in exchange for working capital. The capital given to enterprises as financing of working capital is recorded in this category. The buyer pays the financing company directly for the account receivable concerned. The accounts receivable are secured by the transferred contracts related to the claim.
Both domestic factoring and export factoring are recorded in this category.
Statistics using the definition
Validity of the definition
- Valid until (31 December 2078)