Ace the 2026 Leaving Cert Business Buzz – Flashcards for Future Success!

Factoring is the practice of selling trade debts (accounts receivable) to a factoring firm for less than their full value to obtain immediate cash. The business gets cash quickly, while the factor takes over collection of the invoices and keeps the difference as their fee and to cover risk. This arrangement helps with cash flow when payments from customers are slow. The other terms don’t fit this idea: an average clause is a mortgage provision, a budget is a financial plan, and quality refers to how good a product or service is.