Q » What is factoring?
06 Dec, 2025
A » Factoring in finance refers to a financial transaction where a business sells its accounts receivable to a third party, known as a factor, at a discount. This process allows the business to receive immediate cash flow and transfer the collection risk to the factor. It is often used by companies to improve liquidity and manage short-term financial needs, especially when they face cash flow challenges due to pending customer payments.
06 Dec, 2025
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