As a new financial tool in the market, Factoring stands as one the most important alternatives for the SMEs and Corporates as well. Factoring service can present a good and fast financial tool offering the needed cash flow for the company using the post dated documents such as Purchase orders & postponed Checks. The factoring company will immediately after finishing its usual course of investigation about the client, offers up to 80% of the face value of the post dated document and the balance to be paid once the document is collected on the maturity date. Factoring can also present the a good financing tool for the importers The graphs below presents a summary of the factoring services.Factoring provides financing to the seller of the accounts in the form of a cash “advance,” often 70-85% of the purchase price of the accounts, with the balance of the purchase price being paid, net of the factor’s discount fee (commission) and other charges, upon collection from the account client. In “maturity” factoring, the factor makes no advance on the purchased accounts; rather, the purchase price is paid on or about the average maturity date of the accounts being purchased in the batch. Factoring differs from a bank loan in several ways.