... will discount at least 2-7% off of the face value of your export receivables. The discount could be higher than that if you select a non-recourse transaction. So when quoting your customers, incorporate this factoring discount into your price. As a condition of using a factoring house, you will be expected to sell all or a majority of your export receivables at a discount to the factoring house in exchange for cash. 2. DEFINITION OF FACTORING Factoring is transferring a business' trade receivables which arise from its credit sales to foreign or domestic markets to a financial company named as Factor or Factoring company. Factor is a company that takes over the receivables of a firm and that undertake the responsibility of collection of these receivables. Factor also supplies financing to its customer by making earlier payments. Factoring company gets commission and interest in reply to these services given to customers. Factoring services can be ...

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