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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.
I need assistance with 4 questions. How do I know someone can help me and have some idea of what it would cost before submitting the information? Also, how fast is the turnaround
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