Imagine that you are the financial manager for a medical practice. Your company wants to invest in a new computer system, which would require a significant financial output. The company has been experiencing challenges with cash flow. As the financial manager, you are asked to advise the owner of the practice on ways the organization can raise the cash. You are taking the position that factoring should not be an option. How would you dissuade the owner from considering factoring as the solution? What alternatives would you suggest?
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