--%>
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 : Why accounting profits and cash flows

    Normal 0 false false

    		•
  • Q : Why do focusing on cash flows rather

    Why do we focus on cash flows rather than profits while evaluating proposed capital budgeting projects? We targeted on cash flows instead of profits while evaluating proposed capital budgeting projects since it is cash flow that changes the valu

    		•
  • Q : Advantages of finger prints biometric

    Advantages of finger prints biometric technique: Easy to use and very little training is used No space is required for the installation Large amounts of existing data to allow background list check Has proven effect

    		•
  • Q : Describe usual pattern of cash flows

    Describe usual pattern of cash flows for share of preferred stock? How does the market fidn out the value of a share of preferred stock, given these promised cash flows?Preferred stock contains no maturity date hence, it has no maturity value.

    		•
  • Q : What is Proposition 98 Proposition 98 :

    Proposition 98: An initiative passed in the year November 1988, and amended in the year June 1990 election, which provides a minimum funding guarantee for school districts, community college districts, and other state agencies which give direct elemen

    		•
  • Q : Explain Workload Budget Workload Budget

    Workload Budget: Workload Budget means the budget year cost of presently authorized services, adjusted for modifications in caseload, enrollment, population, statutory cost-of-living adjustments, one-time expenditures, chaptered legislation, full-year

    		•
  • Q : Describe value investing Value

    Value investing is an investment strategy which involves buying securities whose shares appear underpriced by some form(s) of fundamental analysis, like stocks with low Price to Earning or Price to Book value. This strategy basically is of buying stoc

    		•
  • Q : Compute GDP by the expenditure - income

    Normal 0 false false

    		•
  • Q : Shares Assignment Mina Patel has seen

    Assignment Mina Patel has seen attractive advertisements for Dixons Retail plc and its UK-based brands. She is also aware of the intense competition between retailers of electronic and electrical goods, at a time of global economic uncertainty. Mina has recently inherited several thousand pound

    		•
  • Q : Explain Encumbrance Encumbrance : The

    Encumbrance: The commitment of all or portion of an appropriation for future expenses. The Encumbrances symbolize commitments associated to unfilled purchase orders or unfulfilled contracts. Exceptional encumbrances are recognized as budgetary expense

    		•