Definition of "factoring"
  1. It refers to the process in which a business sells its unpaid accounts to a third party known as a factor. The factor buys these accounts at a discounted price and assumes the risk of any potential losses
How to use "factoring" in a sentence
  1. The small business was struggling with cash flow so they turned to factoring to address the issue.
  2. The factoring company bought the unpaid invoices from the business and assumed the risk of debt collection.
  3. The struggling brand took advantage of factoring to quickly turn unpaid invoices into cash and improve their financial stability.

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