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What is the difference between factoring and an accounts receivable line of credit?

April 26, 2017Accounts receivable factoring line of credit

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What is the difference between factoring and an accounts receivable line of credit?

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An accounts receivable line of credit is a revolving loan and has a maximum loan amount. This amount is based on the businesses credit and ability to pay. Factoring is based on the invoice face value and the businesses credit and ability to pay.