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1.it is useful as a solution to short term liquidity problems
2.it does not call for a collateral security and as such it is a flexible of finance to raise.
3.it is easy to raise as it does not entail a lot of formalities
4.Normal credit will be extended to customers as the discounting of invoices does not affect the relationship between the selling company and its customers.
sharon kalunda answered the question on April 16, 2019 at 14:13
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