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How does accounts receivable factoring work? What are the benefits to the two parties involved? What are the risks?
Factoring is when one firm trade accounts receivable (AR) to another. The purchasing firm is called as a factor. The factor makes a profit by buying the AR at a discount. Its risk is that few of the AR may default. The selling firm obtains the cash it needs.
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What are the importance of leverage on a small scale firm?
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You deposit $3,000 in a back account that pays 10% annually, how much would you have im your account after 5 years?
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