First Brands Found Some Fake Invoices
First Brands, First Trust, Elon Musk’s votes, Elon Musk’s brand and corporate rap.
If you are a company that makes brake parts, you will have some website or other system where car dealers and auto-parts stores and other customers can order the brake parts that they need. A car dealership will go on your system and order $179.84 worth of brake parts, and you will send them the brake parts. Customarily you will send them the brake parts on credit: They might have 30 or 60 or 90 days to pay you the $179.84.
But you might want the money sooner, since after all you have already sent them the brake parts. So you can “factor” the invoice: You go to some lender (a bank or specialist factoring firm), the lender gives you, say, $177, and when the customer ultimately pays the $179.84, it goes to the factoring firm.1 The difference between the $179.84 that the customer pays and the $177 that the lender gives you is the lender’s interest.