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More Factoring Service Basics Sometimes, because the seller is a new company, it may find it difficult to secure traditional bank financing. An alternative source of financing in such an instance is to use factoring service by selling accounts... more
More Factoring Service Basics Sometimes, because the seller is a new company, it may find it difficult to secure traditional bank financing. An alternative source of financing in such an instance is to use factoring service by selling accounts to a finance company (the factor) in order to gain immediate access to the cash owed to the seller by its customers. Instead of sending bills directly to the customer, the company sends its invoices to the factoring service, who immediately pays the company–thereby eliminating the 30, 60, or even 90 days of waiting that normally encompasses a billing cycle. less
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