factoringyhtiölle
A factoring company, or factoringyhtiö in Finnish, is a financial institution that purchases a business's accounts receivable at a discount. This service, known as factoring, provides businesses with immediate access to cash that would otherwise be tied up in outstanding invoices. The factoring company then assumes the responsibility of collecting the full payment from the business's customers.
The process typically involves a business selling its invoices to the factoring company. The factoring company
Factoring is a valuable tool for businesses, particularly small and medium-sized enterprises, that need to improve