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factoring and invoice discounting invoice Finance can be divided into two categories factoring and invoice discounting factoring overview a factoring company will purchase a companys accounts receivable Ledger and will provide for each invoice on The Ledger that is approved the invoice financier will become responsible for The Ledger it is their job to chase up debtors and allocate payments received against outstanding balances the value that the invoice financier brings to the table is his or her experience in debt management here is a step-by-step look at the process of factoring a company sells goods or services to one of their customers this customer is sent an invoice by the company the customer is the debtor on the invoice will be a notice of assignment this is to notify the debtor that an invoice financier is involved in the debt management the company sells the invoice to the invoice financier the invoice financier pays some of the money due from the invoice to the company wh