Factoring refers to the process of selling accounts receivable for cash.

Name: Factoring refers to the process of selling accounts receivable for cash.
Brand: Quizplus
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Factoring is indeed the process of selling accounts receivable to a third party (typically a financial institution) in exchange for immediate cash, at a discount to the original value of the receivables. Factoring helps businesses improve their cash flow and reduce the risks of non-payment by customers.

Factoring Refers to the Process of Selling Accounts Receivable for Cash