Factoring has a long and if not entirely honorable, at least “legitimate”, history in business. Especially for smaller or startup businesses who know the technical aspects of their profession very well, but may not be familiar with the niceties of finance (and particularly international finance, which can be a figurative minefield for the unwary), factoring is a legitimate way to sell receivables at a discount to a factor for cash. The factor will then be responsible for chasing down the debtor for the full amount of the receivables, and the discount amount that he paid for the full value of the receivables is his potential profit.