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[statefinancialcorp]

Factoring 101: How It Protects Your Business from Bad Debt

An introductory guide on accounts receivable factoring reveals its effectiveness in safeguarding your business from uncollectible debts. Factoring allows businesses to receive immediate cash for their invoices, rather than waiting weeks or months for customers to pay. By selling invoices, companies can limit their exposure to potential bad debts, as the factoring company assumes the risk of collection. This proactive approach not only stabilizes cash flow but also ensures that you can invest in growth opportunities without the fear of deteriorating receivables.