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Factoring.

Selling your unpaid invoices to a funder at a discount to get paid now instead of in 60 days.

What it means

Selling your unpaid invoices to a funder at a discount to get paid now instead of in 60 days.

What goes wrong

The headline rate is per period, not per year. "2% for 30 days" is roughly 24% annualised, which is a reasonable price for solving a cash gap and a terrible one for funding growth.

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Every term here is one the protocol actually uses, defined for somebody who was never taught it — with the part that usually goes wrong. All terms →