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A/R Finance & Factoring Terms GLossary

What isTrue Sale

A “True Sale” means that the Big Box Retailer is purchasing the product from you and is obligated to pay you whether they sell it or not; the risk of sale is transferred to Mr.Retailer as soon as they accept delivery. Typically, factoring companies will only fund invoices that are a True Sale versus a Consignment or Guaranteed Sale.

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