Meaning of “debt factoring” in the English Dictionary

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"debt factoring" in Business English

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debt factoringnoun [ U ]

uk us

FINANCE a financial arrangement in which a factoring company takes responsibility for collecting money relating to a business's invoices, and immediately pays that business part of the total amount owed on the invoices:

Debt factoring is a powerful tool that businesses can use to improve cash flow.

(Definition of “debt factoring” from the Cambridge Business English Dictionary © Cambridge University Press)