Describe the types of factoring.

The types of factoring are explained below −

• Recourse factoring − In this, client had to buy back unpaid bills receivables from factor.

• Non – recourse factoring − In this, client in which there is no absorb for unpaid invoices.

• Domestic factoring − When the customer, the client and the factor are in same country.

• Export factoring − It involves four parties, the exporter, the export factor, the import factor and the importer. It is also called as cross border factoring.

• Disclosed factoring − If factor name is represented on the invoice of the goods or services and asks customer to pay the factor.

• Undisclosed factoring − Factor is not mentioned on the invoice of the goods or services by manufacturer.

• Advance factoring − In this, advance is paid to the client by factor against uncollected receivables.

• Maturity factoring − In this, bank collects money from the customer and pays to firm on due date or before.

• Invoice discounting − Clients collects payments from customer directly and pays to the factor.

• Bulk factoring − In this, full recourse can be done by client and administration and collection is done by his own ways.

• Agency factoring − In this, finance and protection against bad debts is done by factor, administration and collection is done by client.