In order to use accounts receivable financing for growing a business, the work being performed must be completed and accepted. Submitting an invoice to be funded prior to the work being done is called ’pre-billing.’ A good example of this are advertising transactions. A magazine publisher has collected a group of customers who plan to advertise in an upcoming issue. This means the ads have not run and the customer has not received the full service which gives them grounds to not pay the invoice.The crux of pre-billing and why factoring companies are reluctant to fund those invoice[...]
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[Source: The Money Blogs]
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