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Return To Cashflow FAQ Archive   Search the Archives How factoring different from a loan, say from a bank? Answered By Charly Applegate, Editor Factoring is a loan, although it is relatively different from a loan that is secured from a bank. A factoring company will lend you a definite percentage of each invoice that it issues. It will then accumulate invoice when it is due and pay the balance back to the issuing company. On bank loans, there is a fixed maturity and have amortization of the principal amount that you have borrowed. In other words, bank loans are concentrating on lending capital and not on the issuance of your sales invoices. keywords: Cash Flow | Cashflow | Factoring | Receivables | Loan Cash Flow Budgeting

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