Bismillahir Rahmaanir Raheem
Al Jawaab Billahit-Tawfeeq

Respected brother,

Factoring is Haraam.

It is clear usury.

"Factoring is a financial transaction whereby a business sells its accounts
receivable (i.e., invoices) to a third party (called a factor) at a discount in
exchange for immediate money with which to finance continued business."

This is such a classic example of usury. The invoices are in fact debts. Selling
debts is clearly haram in itself. And discounting the debt is another step in
usury.


And Allah knows best