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Understand the differences between factoring and reverse factoring in trade finance. Sriya Enterprise offers expert advice on financing options. Factoring involves selling receivables to a third party (factor) at a discount in exchange for immediate cash, improving the seller’s cash flow. Reverse factoring, on the other hand, involves the buyer arranging for the factor to pay the supplier early, with the buyer repaying the factor later. This helps suppliers get paid faster while buyers maintain favorable payment terms. Both methods provide liquidity and financial flexibility in trade transactions. Sriya Enterprise supports MSMEs in choosing the right financing option for their needs, ensuring effective trade finance management.

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