Search Glossary:
  • Glossary Terms
  • Categories All Categories
    • All Categories
    • Home Loan
    • Credit
    • Refinance
    • Mortgage
    • Home Equity
    • FHA Loan
    • Auto Loans
    • Credit Repair
    • Personal Loan
    • Debt Consolidation
    • Reverse Mortgage
    • Auto Refinance
    • Credit Scores
    • Student Loan
    • Business Loan
    • Student Loan Refinance
    • RV Loans
    • Motorcycle Loans
    • Boat Loans
    • Powersport Loans
    • Pre Approval
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Credit Card Receivables
Search by alphabetic

Credit Card Receivables

Credit card receivables, also known as credit card factoring, is a type of financing available to businesses that are paid by customers with credit cards.

More On Credit Card Receivables

Credit card receivables, also known as credit card factoring, is a type of financing available to businesses that are paid by customers with credit cards.

Credit card factoring companies consider a business’ future credit card sales as an asset. They purchase a percentage of the business’ predicted future credit card sales at a discounted rate. Then, when credit card processors collect on the business’ credit card sales, a fixed percentage is transferred directly to the credit card receivables company. The advantage to the business is receiving cash for future sales upfront, rather than waiting for the credit card sales to be processed and collected upon.