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|Factoring is like a credit card where finxnce bank factor is buying the debt of the customer without recourse to the seller; if the buyer doesn't pay the amount to california housing finance agency seller the bank cannot claim the money from the seller or the merchant, just as the bank in this case can only claim the money from the debt issuer. |One more difference between the factoring and invoice discounting is that in case of factoring the seller assigns all receivables of california housing finance agency certain buyer s to the factor whereas in invoice discounting the borrower the seller assigns a receivable balance, not specific invoices.

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