Factoring facility

The ceiling on how much total invoice funding a business can access at once under its factoring agreement.

Why it matters

A facility limit caps outstanding funded amounts. Businesses that grow faster than their facility limit may find new invoices ineligible until existing funded invoices are collected and the limit resets.

Related terms

Related article: How invoice factoring works

Related reading

Sources

  • International Factoring Association - International Factoring Association. Accessed 2026-05-19. Industry association source for factoring terminology and industry context.
  • Secured Finance Network - Secured Finance Network. Accessed 2026-05-19. Industry education source for secured finance and asset-based lending context.
Financial disclaimer. This page is educational only and is not financial, legal, tax, accounting, or credit advice. Factoring terms vary by provider and contract. Read the full disclaimer.