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English definition of “debt factoring”

debt factoring

noun [U]
 
 
FINANCE a financial arrangement in which a factoring company takes responsibility for collecting money relating to a business's invoices, and immediately pays that business part of the total amount owed on the invoices: Debt factoring is a powerful tool that businesses can use to improve cash flow.
(Definition of debt factoring from the Cambridge Business English Dictionary © Cambridge University Press)
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