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Factoring is the sale of a company's accounts receivable to obtain working capital. Versa provides non-recourse full notification factoring, where customers are notified to pay Versa directly and they take on the credit risk. Factoring is like a form of credit insurance for clients. The speaker has a background in SBA lending but has been doing factoring for many years. In the factoring world, a factoring facility is comparable to a loan.