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Factoring Mechanism

In a factoring agreement , there are several parties involved, namely:

1.       Factor is a factoring company ( factoring ) which will purchase receivables from clients ( companies ) that need ;

2.       The client is the person or legal entity that would sell the bill to the factors through an agreement ( factoring agreement) ;

3.       Consumer or customer is sesesorang or legal entity that make buying and selling to clients who agreed payment is not delivered to the client , but keoada factor.

Factoring or factoring mechanism here is the process or procedure offers accounts receivable , accounts receivable shift , until repayment.