Business Studies · Business Finance
What is a key feature of invoice financing (such as factoring) for MSMEs?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Borrowing long-term funds based purely on personal credit ratings
- 2Accessing immediate cash by selling outstanding invoices or receivables to a third party✓
- 3Securing long-term asset funding meant exclusively for large public corporations
- 4Financing working capital needs through the dilution of core management equity
Correct answer
Accessing immediate cash by selling outstanding invoices or receivables to a third party
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