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Return To Cash Flow FAQ Archive   Why would a company sell their accounts receivable? Answered By Tristan Fehrst There are a variety of different business circumstances and reasons a company would benefit from selling their accounts receivables. Below are some of the main reasons: * The company cannot collect on unpaid invoices. Sometimes it is better for a company to sell their accounts receivables than to incur the time and cost in attempting to collect them. * By factoring their accounts receivable the company can have almost immediate access to cash. * Factoring can improve a company's cash flow by providing an ongoing source of cash. * Factoring is a form of financing that does not depend on your business' credit rating. This can be attractive to a new start-up company with no history and track record that cannot get traditional financing from banks. The factoring company is really only interested in the quality of the company's customer accounts, not the company's own credit rating. keywords: Factoring | Invoice Discounting | Accounts Receivable | Accounts Receivable Factoring | Cash Flow | Debt Collection | Business Financing | Invoice Factoring Financial Reporting And Analysis Financial Statement Analysis Software Bank Financial Statement

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