One advantage of using factors as a source of short-term financing is that it allows the firm to outsource its collection efforts, thus avoiding the hassle of collecting accounts receivables from customers who pay late.

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Factors typically take on the responsibility of collecting accounts receivable from a firm's customers, freeing up the firm's time and resources for other activities. This can be a valuable advantage for firms in need of short-term financing.

One Advantage of Using Factors as a Source of Short-Term