What is the difference between factoring and a loan?

Factoring is suitable when your company has invoices or receivables from customers and needs to obtain cash before the collection date.

Key points

• A loan is different: you take out financing and repay it in installments according to the contract.

• If your problem is that your money is tied up in outstanding invoices, factoring might be closer to your needs; if you need general or investment financing, a loan might be more appropriate.

Source

• Central Bank of Egypt — Financial Inclusion Rates