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In this video tutorial, the concept of factoring in the world of finance is discussed. In today's business scenario, suppliers often need to offer credit terms to customers. This can lead to the challenge of having to collect payments from customers who have been given credit. Factoring can help solve this problem by providing a way for suppliers to receive immediate cash by selling their accounts receivable to a factoring company. This allows suppliers to improve cash flow and reduce the risk of non-payment.
