Extract
Factoring
Factoring is a form of financing in which a business sells its receivables to a third party or "factor company" at a discounted price. Under this arrangement, a factor company agrees to provide financing and other services to the selling business in return for interest and fees on the money that they advanced against the seller's accounts receivables. Businesses in need of cash can thus secure about 80 percent of their accounts receivables' face value. In rare cases, a higher percentage can be secured, but in most instances 20 percent of the value o...See the full content of this document
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