TThere are a number of different types of business loans, including bank loans.
Technically, invoice factoring is not a loan. Rather, you sell your invoices at a discount to a factoring company in exchange for a lump sum of cash. The factoring company then owns the invoices and gets paid when it collects from your customers, typically in 30 to 90 days.
On the other hand, invoice discounting allows you to retain more control over your sales.
These are the some benefits of invoice discounting by M1 Xchange | TReDS
1- Fast access to cash.
2- Cash flow without debt
3- Flexible terms
4- Reasonable factoring fees
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