Finance companies that buy receivables from businesses are called
Business · High School · Thu Feb 04 2021
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Finance companies that buy receivables from businesses are commonly referred to as "factoring companies" or "factoring services." These companies engage in a financial transaction called "factoring," where a business sells its accounts receivable (invoices) to a third party (the factoring company) at a discount. This allows businesses to receive immediate cash for the invoices, instead of waiting for their customers to pay within the normal credit terms