One advantage of factoring accounts receivable is the ability it gives the firm to turn accounts receivable immediately into cash without having to worry about repayment.

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Factoring accounts receivable involves selling the rights to receive payment from customers to a third party at a discount, which allows the firm to receive cash immediately. The third party then collects payments directly from the customers, so the firm does not have to worry about collection or repayment.

One Advantage of Factoring Accounts Receivable Is the Ability It