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What does it mean when a company says they are factoring in an invoice?
Wiki User
∙ 10y ago
A company that is factoring an invoice is the funding source for a company/corporation. What they do is buy the right to collect on that invoice by agreeing to pay the invoices face value, usually at a discount. The company who is factoring will pay 75% to 80% of the invoice's face value immediately and then forward the rest, less the discount, when the customer pays.
Wiki User
∙ 10y ago
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