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Invoice Discounting vs Invoice Factoring: Difference with Examples

  • September 23, 2022

If the invoice discounter holds a reserve amount, the discounter will likely use it to cover part of the outstanding amount. However, the reserve amount is typically a portion of the invoice value and may not fully cover the loss. Lenders like AltLINE and Triumph Business Capital, on the other hand, offer invoice factoring. Adjusting to a new reality where invoice payment dates are unpredictable can be tough for any business. Obviously, going with a discounting invoice service means your overall profits will be reduced. If even one customer is late in paying a large value invoice, this can have...

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