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Drupady [299]
3 years ago
7

Why would firms that rely heavily on credit sales find factoring attractive?

Business
1 answer:
lorasvet [3.4K]3 years ago
5 0
From my understanding, factoring is a specific transaction in which a business sells its invoices to a factor, which is a third party commercial financial company. This process is completed so that the business can get cash quicker than it would to wait for a customer’s payment. With factoring, a company will have more<span>more more flexibility because the funds are not restricted, rather than having to deal with a typical bank loan</span><span />
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