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What is factoring service ?

Factoring is a type of financial service in which a business entity sells its bill receivables to a third party in exchange for cash at a discount. Now get the Best premium factoring service at very low interest from IndiaFactoring for Your working capital. To Know More Click: https://www.indiafactoring.in/en/fair-practice-code<br>

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What is factoring service ?

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  1. Factoring Services and Its Uses THYAGARAJAN G [Accountant]

  2. Thyagarajan[Accountant]

  3. What is Factoring Service ? • Factoring is a type of financial service in which a business entity sells its bill receivables to a third party in exchange for cash at a discount. • Types of Factoring • There are various types of factoring, such as: • Recourse and non-recourse factoring • Advance and maturity factoring • Full factoring • Disclosed and undisclosed factoring • Domestic and cross-border factoring • International factoring • Specialized factoring • Reverse factoring

  4. Uses of factoring Service A factor offers immediate payment for invoices. The factor takes payment from the client and pays you. When your client pays the invoice in full, the financing agreements settles. • Your financial benefits from factoring • advantage predictable better liquidity and a greater portion of equity • regulate your financing wishes for your sales • Use the cash discounts and rebates offered by using your suppliers • furnish longer payment phrases in your clients • experience protection against horrific debt losses • reduce your balance sheet total and improve your rating • Optimise your working capital

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