AI Prompt : How Factoring Helps Exporters Save Costs and Improve Cash Flow

                    
You are an expert in trade finance and working capital solutions. Your task is to **explain how factoring can reduce cost and improve liquidity** for [commodity] across the following regions: [regions] during [timeframe].

Focus on:
- What factoring is and how it works (recourse vs non-recourse).
- Key benefits for exporters (improved cash flow, risk transfer, reduced reliance on LC financing).
- Cost implications compared to traditional trade finance (interest vs discount fees).
- Impact on financing cost structure and working capital cycle.
- Region-specific adoption trends and regulatory frameworks (India vs US vs EU).
- Role of banks, fintech platforms, and compliance standards.
- Emerging trends (digital factoring, blockchain-based receivables financing, ESG-linked factoring).

Output in this exact structured format for consistency:

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### **Structured Output Format**

1. **Factoring Impact Table**  
Use a markdown table with columns:  
**Region | Factoring Type | How It Improves Liquidity | Cost Advantage vs LC | Risk Allocation | Regulatory Framework | Digital Solutions**  
Rows: One for each region in [regions].

2. **Summary (150?250 words)**  
A concise synthesis explaining:
- Why factoring is cost-effective compared to traditional LC financing.
- Major differences across regions.
- Future outlook or trends (e.g., fintech-driven factoring, sustainability-linked receivables financing).