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Sir I couldn’t understand the difference between factoring and reverse factoring.. in both the the supplier is selling invoices to a factor at a discount and getting money in advance …. and paying later to the factor when the buyer pays for the invoice at maturity. What is the difference ?
With normal factoring, it is the seller who employs the factor in order to receive cash from customers sooner.
With reverse factoring, it is the customer who uses the factor and who decides with invoices will be paid sooner.
However it is very rare and I cannot imagine it being relevant for Paper FM.
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