Factoring vs. Forfaiting

Factoringnoun

A financial transaction whereby a business sells its accounts receivable to a third party (called a factor) at a discount.

Factoringnoun

(math) The process of factorization.

Factoringnoun

The act of resolving into factors.

Factoringnoun

(mathematics) the resolution of an integer or polynomial into factors such that when multiplied together they give the integer or polynomial

Forfaiting

In trade finance, forfaiting is a service providing medium-term financial support for export/import of capital goods. The third party providing the support is termed the forfaiter.