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If you are dealing in industrial products or any other items, where you need to provide credit to most of your clients, then you would realize very soon that most of your money is stuck with your clients and you can lay your hands on that money only after they pay you on the due date. This can only be frustrating and can seriously hamper your cash flow thus leading to delayed payments to your suppliers, your staff members and can also put a roadblock on your road to expansion. In business factoring, a factoring company will purchase your credit invoices that you have issued to some or all of your various clients.
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