Published at Tuesday, March 19th, 2019 - 13:02:13 PM. Invoice. By Fanchone Albert.
Cash flow shortages can happen to almost any business, but invoice factoring can provide a quick, easy solution. Invoice factoring involves the selling of your account receivables or invoices to secure immediate working capital.
After the purchasing company receives full payment for the invoice, you’ll receive the remaining value minus a ’factoring’ fee. This fee is based on a number of factors, including your customer’s credit worthiness, the average terms, and the invoice number and size. However, generally, the invoice factoring fee is up to five percent of the invoice value.
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