What is the difference between debtors and reveivables in accounts?

Question

how the factoring services operates?

Answer 1

They mean the same thing. "Trade debtors" is used in the UK and "Accounts Receivables" is used in the US, altho' increasingly other countries, including the UK, are now using "Accounts Receivables" too.

Factoring Receivables-

Companies sometimes need cash before customers pay their account balances. In such situations, the company may choose to sell accounts receivable to another company that specializes in collections. This process is called factoring, and the company that purchases accounts receivable is often called a factor. The factor usually charges between one and fifteen percent of the account balances. The reason for such a wide range in fees is that the receivables may be factored with or without recourse. Recourse means the company factoring the receivables agrees to reimburse the factor for uncollectible accounts. Low percentage rates are usually offered only when recourse is provided.