Business Studies · MSME Financing
What is a key feature of invoice factoring as a financing option for MSMEs?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It provides financing for asset acquisition through equity dilution
- 2It offers long-term financing restricted exclusively to large corporate houses
- 3It enables businesses to access immediate cash by selling outstanding invoices to a third party at a discount✓
- 4It allows businesses to borrow money based strictly on their long-term credit rating
Correct answer
It enables businesses to access immediate cash by selling outstanding invoices to a third party at a discount
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