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Therefore, a freight company will effectively "sell" a amount of invoices that have an outstanding balance owed to them by customers with a factoring agency, who will in return for the invoices that they can received, then offer an upfront sum of money to the freight company.
As such, this is a financial transaction in which a small business sells its portfolio of invoices, and for that reason the money it is owed by customers, with a factor firm, also called an invoice discounter (the financier). Besides, in addition they could not begin a new work or manufacturing process, unless they got their payment.

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