1. The seller's enterprise signs a factoring agreement with the factor. In general, the seller needs to sell the qualified accounts receivable generated by credit sales to the factor.
2. After signing the agreement, for non-recourse factoring, the factor should first pay attention to the customers of the seller's enterprise.
3. Credit evaluation: the customer approves a credit line, and the accounts receivable within this credit line become "approved" accounts receivable.
4. For this part of accounts receivable, when the customers of the seller's enterprise are unable to pay, the factor has no recourse against the seller.
5. At the time of payment, the discount party will recover the financing provided to the seller.