Many businesses who supply goods and services to other businesses are waiting for their payments to get back to them on the invoices that they sent out. They may be in need of money to pay their payroll, material bills, etc. but have used up the line of credit at the bank (primary market).
Factoring is the term used to refer to a funding source who can buy the invoices from such a business and advance the needed cash and then recieve the payments from those invoices. - June 04, 2005
