A type of factoring in which all factoring services or facilities are provided by the factor to the seller, including credit control and credit protection. The factor assumes credit risk (within the approved limits) but rather has no recourse to the seller of receivables (debt): for all trade debts overdue by 60- 90 days. Therefore, the factor is involved in setting any credit limits or approving eligible/ acceptable customers, in addition to handling collection as well as bookkeeping (maintaining sales ledger) and providing finance.

The factor’s charges include charges relating to sales ledger maintenance and debt collection, credit risk premium (premium for assuming risk of default or non-payment) and interest on financing provided by the factor to clients (from the drawing date to maturity date of an invoice- typically a monthly invoice).

It is also known as old-line factoring or full factoring or full-service factoring.