Factoring of Debtors:
Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (i.e., Invoiced Debtors) to a third party (called a factor) at a discount. A business will sometimes factor its receivable assets to meet its present and immediate cash needs.
Cession of Debtors:
A cession is the act by which a person/entity (known as the cedent) transfers their personal right to another (known as the cessionary). By signing a cession of book debts a debtor therefore agrees to transfer to the creditor the right to claim money that is or may become due and owing to the debtor by their debtors.