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[Music] hello everyone and welcome back to the world of finance you are watching finance concepts with Nikhil and in this session let us talk about an interesting concept titled as factoring before I step into what is factoring let us first understand the current business scenario around us if you are a supplier supplying some kind of goods or services in todays business scenario you have a need to provide credit to your customers so if you are a firm selling goods you have a need to make sales on credit making sales on credit or offering credit sales or offering some kind of credit terms to your customers has become your need today so if making credit sale is your need what is the problem you are definitely going to encounter two problems problem number one you have to take effort of making collection from your debtors because you have made sales on credit and assume that you have given credit for three months so during this period of three months not all customers will promptly com
