As a factoring company Fostrian's mission is 100% centered on fostering our clients' growth and overall emergence to success. We want our clients to strengthen their financial position and graduate to bank financing.

The Factoring Industry’s Many Names

Accounts Receivable Factoring or Invoice Factoring?

There are many terms used to describe the factoring industry and this can be confusing at times. “Factoring”, “invoice factoring”, “accounts receivable factoring”, “accounts receivable financing” -all these terms fundamentally mean the same thing, and are just different labels used for the factoring industry.

“Asset Based Lending” encompasses factoring, but is a term unto itself that describes a wider range of financing products than just factoring. In other words, “invoice factoring”, “accounts receivable factoring”, “accounts receivable financing” (different terms used to describe factoring) are/is a subset of asset based lending, and just one of the products under the umbrella of asset based lending products. The asset based lending family of products is comprised by loans against equipment, inventory and real estate along with the previously mentioned lines of credit backed by accounts receivable (“invoice factoring”, “accounts receivable factoring”, “accounts receivable financing”, factoring etc.).