Receivable financing differs from borrowing in which companies sell accounts receivables rather than merely them serving as collateral in a loan. The result is that your company can convert its receivables into immediate short-term cash flow.
This process places the time, cost, and effort of the collection into the hands of the factoring company (in this case, Finaxar), allowing you the time to concentrate on running your company. Hence, explaining why it is only bought at a discount of its face value.
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