When you offer terms to your customers and then they slow pay your invoices, you are being held hostage by your customers. Invoice discounting is a way to break free of this vicious cycle. Why spend all that time and effort trying to collect your receivables? Factoring companies screen your debtors to ensure that they are credit worthy and are going to pay and also handles the collections for you. It's like having an accounts receivable department without the headaches.
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