Maintenance of Sales Ledger:

• A factor is responsible for maintaining the sales ledger of the client. So, all the sales transactions of the client are taken care of by the factor.

Financing:

• The factor finances the client by purchasing all the account receivables and/or account payable.

Credit Protection:

• In case of non-recourse, the risk of non-payment or bad debts is on the factor.

Collection of Money:

• The factor performs the duty of collecting funds from the client’s debtors. This enables the client to focus on core areas of business instead of putting energies in the collection of money.