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hey guys welcome to they take finance and in this video we would be covering factoring as we all know that today with the development of various financial services factoring is also emerging as one of the most used financial services being provided in this business so lets get an easy overview about this business introduction factoring can be defined as an increment in which C receivables arising out of sale of goods and services are sold by a form to the factor as a result of which the title to the goods or services represented by the receivables passes on to the factor so what happens is that about three parties are involved in this business so lets assume there is a seller a buyer and a factor so the seller on selling goods on credit to the buyer the seller who is selling the goods on credit to the pile now he would be getting the payment for those goods or services in future period of time which was agreed between the buyer and the seller now if the seller comes in a requirement