--%>
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 : Describe Treasury bill Describe

    Describe Treasury bill? How risky is it?Treasury bills are short term debt instruments issued through the U.S. Treasury which are sold at a discount and pay face value at maturity.  They are very close to risk-free as they are backed throug

    		•
  • Q : Creative destruction Normal 0 false

    Normal 0 false false

    		•
  • Q : Define Legislature Legislature,

    Legislature, California: Two-house bodies of elected representatives vested with the accountability and power to make laws affecting the state (that is, except as limited by the veto power of the Governor).

    		•
  • Q : Describe formula to figure out

    Normal 0 false false

    		•
  • Q : Describe factors cause change in

    Normal 0 false false

    		•
  • Q : Advantages-disadvantages of internal

    Describe advantages and disadvantages of the internal rate of return method? The internal rate of return method is discounted cash flow method and number expressed like a percentage. Typically these are seen as advantages. The main disadvantag

    		•
  • Q : Finance powerpoint Hi, I am a

    Hi, I am a management student studying in a business school. I have given a case study (attached below in PDF) as evaluation. I was able to get an English version but since i am not familiar with the subject i don't know how to solve this. I would like to know if you can provide any solution f

    		•
  • Q : Effect of change on equilibrium

    Normal 0 false false

  • Q : What is Revenue Revenue : Any adding up

    Revenue: Any adding up to cash or other current assets which does not raise any liability or reserve and does not symbolize the reduction or recovery of expenditure (example, reimbursements or abatements). Revenues are a kind of receipt usually derive

    		•
  • Q : Durable goods industries and

    Normal 0 false false

    		•