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Review:

Invoice Factoring

overall review score: 4.2
score is between 0 and 5
Invoice factoring, also known as accounts receivable financing, is a financial transaction where a business sells its invoices to a third party at a discount in exchange for immediate cash.

Key Features

  • Quick access to cash flow
  • Improved liquidity
  • Reduction in accounts receivable risks
  • No debt incurred

Pros

  • Provides immediate cash flow for businesses
  • Helps maintain steady operations during slow-paying customers
  • No debt is incurred as this is not a loan

Cons

  • Discounted rates can affect profit margins
  • May not be suitable for all industries or businesses

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Last updated: Mon, Feb 3, 2025, 12:39:36 AM UTC