For the sake of clairity, here is how factoring companies talk about different parties to a factoring transaction. When a prospect comes seeking accounts receivable financing, they are considered the “client.” Throughout the relationship the borrower will be the “client.”
The factoring client has “customers” who they provide services or products to and then invoice. Factors make advances on invoices to our client’s customers. Customers are also known as “account debtors.” As always the credit worthiness of the customer/account debtor will be the condition upon which advances are considered.
You are the client, and you have customers.