Selling outstanding invoices to a third party at a discount for immediate cash.
Distinct from an advance: factoring buys specific existing receivables, while an advance buys a share of future ones. Common in trucking, and it matters because a carrier who factors has already assigned the receivables an advance would draw on.
Position
An individual outstanding advance against a merchant, counted in order — first position, second position, and so on.
UCC-1 financing statement
A public notice filed with the secretary of state recording a secured party’s claim against a business’s assets.
Stacking
A merchant taking an additional advance while an earlier one is still outstanding, so multiple remittances draw on the same receipts.
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