An Introduction to Factoring and Discounting | BTalk Australia

Last Updated Dec 6, 2009 10:44 PM EST

Podcast

Brendan Green

Brendan Green


(Episode 387; 14 minutes 11) Factoring and discounting is a means of bringing forward cash from your debtors. You've issued an invoice and, rather than waiting for a client to pay, you get access to the cash almost immediately.

There are lots of clear benefits, but if it's simply a question of cashflow is it any better than asking your bank for an overdraft?

On today's BTalk Australia I talk to Brendan Green, the outgoing chairman of the Institute for Factors and Discounters. What is the difference between Factoring and Discounting? What sort of business can participate? What if a debtor doesn't pay up?

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