Factoring accounts receivable is feasible only for the most creditworthy and largest firms.

Question

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Factoring accounts receivable is not limited to the most creditworthy or largest firms. In fact, factoring can be an option for small and medium-sized businesses that are having trouble managing their accounts receivable or need cash flow to grow their operations. However, the creditworthiness of the accounts receivable and the risk involved in the transaction will affect the cost of factoring.

Factoring Accounts Receivable Is Feasible Only for the Most Creditworthy