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Sir What are the Key Differences between Invoice Discounter and Factor, What I understood that is:
Invoice Discounter do Raises Finance for the Company against invoices as a security
Factor is an Outsource Corporation that Does all the Administration Work Of Collecting Debts from Customers of Client and give 80% Amount of Money to the Client
Am I Right or I am lacking Somewhere?
You are correct about invoice discounting.
With regard to factoring, the factor collects debts on behalf of the company. Usually they will be prepared to advance some of the money (and charge interest for doing it. The amount advance is not always 80% – it depends on what is agreed. The company will still receive all of the money collected, but for the rest they have to wait until the factor has collected it.
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