how does accounts receivable factoring work , Financial Management

+44 141 628 6080
[email protected]

how does accounts receivable factoring work

How does accounts receivable factoring work? What are the benefits to the two parties involved? What are the risks?

Factoring is while one firm sells accounts receivable that is AR to another. The purchasing firm is known as a factor. The factor creates a profit by purchasing the AR or Accounts receivables at a discount. Its risk is that some of the AR Accounts receivables may default. The selling firm gets the cash it needs.

Request for Solution File

Ask an Expert for Answer!!

Financial Management: how does accounts receivable factoring work

Reference No:- TGS0276551

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Financial Management

Q : what are the benefits of the jit inventory

what are the benefits of the jit inventory control systemthe just-in-time that is abbreviated as jit inventory control system lowers inventory

Q : what are the basic requirements for a successful

what are the basic requirements for a successful jit inventory control systemfor a jit system to be booming the supplier must be willing and capable

Q : proximity printingthe proximity exposure method

proximity printingthe proximity exposure method is same to contact printing except that a small gap 10 to 25 microns wide is maintained among the

Q : can a company have a default rate on its accounts

can a company have a default rate on its accounts receivable that is too low explaina company could comprise a default rate on ar that would be

Q : how does accounts receivable factoring work

how does accounts receivable factoring work what are the benefits to the two parties involved what are the risksfactoring is while one firm

Q : projection printingprojection printing keep away

projection printingprojection printing keep away from mask damage entirely an image of the patterns on the mask is projected onto the resist-coated

Q : hard-bakinghard-baking is the final step in the

hard-bakinghard-baking is the final step in the photolithographic process this step is essential in order to harden the photoresist and better

Q : in may 2003 gencorp acquired sequa corps

in may 2003 gencorp acquired sequa corps propulsion subsidiary arc for 133million in cash and 11 million in transactions costs table below lists

Q : banks like to make short-term self-liquidating

banks like to make short-term self-liquidating loans to businesses whybanks like to be capable to see where the funds are similarly to come from

1921832

Questions
Asked

3,689

Active Tutors

1442543

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

Discuss patient with athsma about use of bronchodilators

You're instructing a patient with athsma about the use of bronchodilators. You should teach the patient which one?

Discuss new forms of advertising changing opdps work

How have social media and other new forms of advertising changing OPDP's work?

Observing and reporting a correctional clients behavior

Observing and reporting a correctional client's behavior is extremely important, to ensure they receive the right mental health care.

Discussion about improve patient satisfaction scores

You are trying to improve patient satisfaction scores in your hospital's emergency department. You decide to poll 40 patients a day for three weeks.

Problem concerning about the risk for stroke

Sam is concerned about his risk for his stroke since his dad died of stroke at age 57 based on the following information why would you recommend

Patient presented with acute-onset abdominal pain

You are on your 5th straight duty in the Urgent Care and you are seeing a 18 yo may who presented with acute-onset abdominal pain for 2 days.

Discuss - male with a history of moderate persistent asthma

A nurse is caring for an 8-year-old male with a history of moderate persistent asthma. He is accompanied by his mom and dad who reported