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How does factoring work? Factoring can easily be integrated to any business and works as follows:
• You deliver goods or services and raise an invoice • You sell the invoice to a factoring company. They immediately give you the first instalment of 70% to 80% of your invoice value. • You get the immediate funds you need to run your business • Once the customer pays the factoring company you get the second instalment (of 20% to 30%) and are charged a small fee for the transaction. |
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