The process is extremely simple. It involves three parties – the factor, the factorant (the entrepreneur issuing the invoice) and the invoice recipient (the counterparty).
The entrepreneur delivers the goods or performs the service for its customer and then submits a copy of the invoice to the factor for faster cash.
The factor performs a transfer of funds to the factor’s account, and the recipient pays the liability directly to the factor’s account on a prearranged date.