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Buying invoices

 
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nevadascul

posts: 651

Apr 28, 2011 7:59 PM ET    Quote  Report Abuse
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If you are talking about A/R type invoices, I work for a company that buys medical invoices from doctors and hospitals.  The company pays somewhere around 50% of the outstanding value of the invoice.  The company then assumes the risk and cost of collecting that debt.  Whatever the company has left after paying the collection cost is their profit.   I simplified the processes.  But, you get the idea.



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smith360

posts: 79

Apr 30, 2011 3:29 AM ET    Quote  Report Abuse
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Unlike loans which can be denied based on your credit worthiness, factoring firms that buy invoices are more concerned with that of your customers. Since you are essentially selling them the invoices, your customers will be the ones that pay them. This means that this is the perfect option for businesses that do not have a good enough credit history.. .



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racerkids

posts: 2

Jul 16, 2011 11:22 AM ET    Quote  Report Abuse
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I have read this post and if I could I want to suggest you few interesting things or advice.



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