John bought $40 000 worth of receivables for 60 percent of that sum ($24 000). He will profit if the money he eventually collects exceeds the amount he paid for the receivables. John is involved in

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John is factoring accounts receivable, which involves buying receivables from another company at a discount and collecting the full amount from the customers. The profit comes from the difference between what John paid for the receivables and the amount he collects from customers.

John Bought $40 000 Worth of Receivables for 60 Percent