When calling up a factor to discuss your business, it helps to get the names we call things in the factoring industry right. Like any industry, we use particular words that universally mean the same thing no matter which factoring company you might be speaking to, like ours.
The most prevalent distinction is, who are you and who are you selling to? This is how a factoring company talks about this so it’s easy to follow;
The client – this is you who are receiving the services offered by the factoring company. Our client is the one who applies for factoring and uses the capital to grow their company.
The customer – this is who you, the client, are selling to. Your customer has to be approved for credit availability. A credit check is done by the factor to determine how much of an advance the factor is willing to provide. The customer can also be called the account debtor to make sure everyone knows which party we are discussing.
You are our client and you have customers.