--%>
Assignment Help - homework help

Explain working of accounts receivable factoring

Explain working of accounts receivable factoring? And describe benefits to the two parties involved and risks?
Factoring is while one firm sells accounts receivable (AR) to another. The purchasing firm is termed as a factor. The factor earns profit through purchasing the AR at a discount. Its risk is that some the AR may default. The selling firm gets the cash it required.

   Related Questions in Finance Basics

  • Q : Define Reserve Reserve: The amount of a

    Reserve: The amount of a fund balance set sideways to give for expenditures from the unencumbered balance for ongoing appropriations, future apportionments, and economic uncertainties, pending salary or price raise appropriations, and appropriations f

    		•
  • Q : Describe equilibrium price and quantity

    Assume the market for widgets can be described by the given equations:                     Demand: P = 10 - Q             &

    		•
  • Q : Make mutual and stockholder-owned

    Compare and make mutual and stockholder-owned savings and associations of loan. Some savings and loan associations are owned through stockholders, just as commercial banks and other corporations are owned through their stockholders.  Other

    		•
  • Q : Describe the risk-return relationship

    Describe the risk-return relationship.The relationship among risk and required rate of return is term as the risk–return relationship.  This is a positive relationship since the more risk assumed, the higher the required rate of retur

    		•
  • Q : Define Spot Bill Spot Bill : It is an

    Spot Bill: It is an introduced bill which makes non-substantive modifications in a law, generally with the intent to amend the bill at a later date to comprise substantive law modifications. This procedure gives a means for circumventing the deadline

    		•
  • Q : Financial crisis of India during 1997 I

    I have to explain Financial crisis of India during 1997. Can someone help me in this question ?

    		•
  • Q : Emergency Banking Act What did the

    What did the Emergency Banking Act do?

    		•
  • Q : Compounded Quarterly In Financial

    1. If you deposit money today in an account that pays 4.3% annual interest, how long will it take to double your money? Round your answer to the nearest whole. years 2. Find the present value of the following ordinary annuities. Ro

    		•
  • Q : Describe accumulated depreciation

    Describe accumulated depreciation?Depreciation is the allocation of an asset's primary cost over time. Accumulated depreciation is the sum of all the depreciation cost that has been identified to date.

    		•
  • Q : Aggregate demand or aggregate supply

    Normal 0 false false