What is a factoring service? <br /><br />In its simplest form, a factoring service is the purchase and sale of a company’s accounts receivable (invoices) at an amount less than (a discount of) the face value. (Example: If the credit factoring discount is 3 percent, the invoice is being purchased for 97 cents on the dollar). This allows a company to convert its dormant assets — or invoices — into useable cash flow. It is not a loan. <br />