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Commercial Invoice Factoring . Suppose You Could Do This..
Commercial invoice factoring is a process where a factor - the company that purchases your commercial invoice and receivables - provides your business with the advance payment up front. As a third-party, the factor eliminates the sale-to-collection 30, 60 or even 90 day delay. The advance payment you receive from the factor is typically less a small discount (around 1-3%) of the total commercial invoice. When using commercial invoice factoring, it is important that your
customers have good debt records and regularly pay their commercial invoice on time. It is not a good situation for your business or your factor if the receivables cannot be collected at the end of the term.
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