The four major functions of traditional factoring include

The four main functions of traditional factoring include: factoring financing, commercial account management, collection and bad debt guarantee. Factoring, simply put, is the act of buying a claim belonging to another person from that person at a relatively low price and being responsible for collecting it so as to make a profit. The four main functions of traditional factoring are: accounts receivable management; providing factoring financing to the seller; providing credit guarantees to the buyer; and collecting accounts from the seller.