Buying Accounts Receivable Guide

: Once the customer pays, the buyer remits the remaining balance to the seller, minus a factoring fee (usually 1% to 5% ). Key Benefits for the Parties Involved For the Seller :

It is important to differentiate between buying receivables (factoring) and borrowing against them (financing): buying accounts receivable

: The buyer provides an upfront cash payment, typically 70% to 90% of the invoice's face value. : Once the customer pays, the buyer remits