The statement concerning invoice discounting that is not true is:

Question

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Invoice discounting is usually less expensive than factoring. The main difference between the two is that in invoice discounting, the business retains control of collecting the outstanding debts, which makes it a more confidential form of financing. However, in factoring, the factoring company takes control of collecting the debts and the business loses some confidentiality. Currently, invoice discounting is a more important source of funds to businesses than factoring due to its lower costs and increased control over collections.

The Statement Concerning Invoice Discounting That Is Not True Is