Business receivable factoring is the act of purchasing receivables from a company at a discount rate and in return, giving the original holder of the receivables something in return— usually money or services. Business factoring is becoming a more common place event. Businesses are taking their futures into their own hands and relying less on traditional lenders like banks.

Although it has been in practice for many years, the concept of business receivable factoring can be confusing. Business receivable factoring is the selling of a company's accounts receivable, at a discount, to a party, who then assumes the credit risk of the account debtors and receives funds as the debtors settle accounts.

Conquest, Inc. uses a specialized system similar to business receivable factoring that allows our customers to take advantage of their future sales. They are then able to make their desired purchases. The benefit of our program is they get those funds up-front and then they do not have to worry about making a set payment back to Conquest, Inc. each month. Instead, the monies are collected based on their volumes; so more is collected when volumes are high and less is collected in slower months.