A type of factoring in which the factor only selects specific invoices for discounting, and remits to the seller (client) only the cash collected in respect of the selected credit bills. In this sense, the factoring service is limited in scope and does not address the entire universe of a seller’s accounts receivable which were initially considered for factoring. Selection may be subject to a set of criteria as determined by the factor, including credit risk assessment, cost considerations, processing capacity, etc.
March 10, 2025
