Accounts Receivable Factoring

Definition: Accounts Receivable Factoring is obtaining funds by selling a company's accounts receivable. Normally, the company that "sells" its accounts receivable receives less than the full amount for the money owed on the accounts.
The main benefit of this approach is that the funds are obtained now rather than later.

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More on financial management: Absorption Costing, Credit Management, Credit Rating, Customer Profitability Analysis, Debt Settlement, more on financial management...

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