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so what is factoring well factoring is a way for business owners to get working capital to run their business and the peace of mind to know that they'll get paid all right let's say you make furniture right and retailers all across the country sell your furniture in their stores but one day one of the retailers places an order for a hundred tables so you shift them the tables and send them an invoice now that you've shipped the order you need cash so you can buy the raw materials to make more tables and pay your employees but there's a problem the retailer might not pay the invoice for 30 60 or even 90 days but you need that money now so you can restock your inventory and pay your bills see when a retailer places an order with you the factoring company makes sure that the retailer is creditworthy to pay for the order they keep records of all payments so you always know which retailers have paid and which ones haven't and they collect payments from retailers so you don't have to the ad...
