Thursday, September 11, 2014

What are the risks of factoring for the sellers?

What are the risks of factoring for the sellers?
In many cases, you will remain responsible for collection. Thus, you sell your receivable for a discount but remain liable if the factor cannot collect. Between the discount and the risk of loss, the seller can lose substantial portion of its revenue. Nevertheless, under the right circumstances this can be an important and necessary part of financing your operation

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