What is factoring? – InterviewSolution

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1.	What is factoring?
Answer» Factoring is a transaction in which a business sells its accounts receivable, or invoices, to a third party commercial finance company, also known as a “factor.” This is done so that the business can receive cash more quickly than it would be waiting 30 to 60 days for a customer payment. Factoring is sometimes called “accounts receivable financing.”

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