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The cost of doing business with a receivable financing company is the discount taken on the invoices submitted for funding. Fees range from 1 to 3 percent, depending on volume, credit-worthiness of the customers sold and overall risk. The receivable financing discount taken is best compared to a merchant accepting a Visa or MasterCard transaction and receiving immediate payment, less a percentage or discount, before the actual cardholder has paid his or her monthly statement.
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