Factoring companies offer a range of services in the area of sales administration

and the collection of amounts due from debtors. A factor can take over the
administration of sales invoicing and accounting for a client company, together
with collecting amounts due from debtors and chasing up any slow payers. A
factor can offer a cash advance against the security of debtors, allowing a
company ready access to cash as soon as credit sales are made. For an additional
fee, a factor can take on any bad debts that may arise through non-payment.
Since here the factor does not have recourse to the company for compensation in
the event of non-payment, this is called non-recourse factoring.