# Factoring Agreement

**IRI:** https://folio.openlegalstandard.org/R9TrVTLjfQnxkv8JTX6c9L2

## Labels

## Definition

A Factoring Agreement is a financial arrangement where a business sells its accounts receivable, or invoices, to a third-party factoring company at a discount. This agreement outlines the terms and conditions under which the factoring company will advance funds, collect payments, and charge fees, providing immediate liquidity to the original business.

## Sub Class Of

- https://folio.openlegalstandard.org/RVoyN9hN3m5gy3So01ZEZ8

**Deprecated:** False