Factoring is a financial transaction whereby a business sells its accounts receivable at a discount for immediate cash. The funding source is known as the factor or trade finance company. The primary benefit is to provide immediate working capital and protect you from business (credit risk) losses. The factor may assume the responsibility for the customer’s financial ability to pay and perform credit, collection and related bookkeeping functions.
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What is risk management?
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What is credit insurance?
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What is political risk?
What does political risk insurance protect your business against?
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