Factoring

Meaning

Factoring is when a business buys your outstanding invoices and pays you the money immediately, for a small fee.

Key points

• Factoring appears frequently in invoicing, payment handling, and bookkeeping workflows.
• The term improves clarity between clients, suppliers, and accounting teams.
• Consistent use supports cleaner documentation and better reporting quality.

Practical use

In Nexbal workflows, factoring is used to keep invoice and payment operations structured and auditable.