For a business to factor receivables,the _____ must have good credit ratings.

Question

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Factoring receivables involves the sale of a business's outstanding invoices to a third-party, known as a factor, at a discount. As those invoices function as collateral, the factor is likely to carefully evaluate the creditworthiness of the customers who have issued them before agreeing to buy them at a discount. Therefore, for a business to factor receivables, it is essential that their customers have good credit ratings.

For a Business to Factor Receivables,the _____ Must Have Good