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  • Factoring: Presented By-Rahna K K Rajesh PH Firoz Sudarman

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    Rehna Mohammed Ali
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    Factoring is a financial transaction whereby a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) factoring is the cash-management tool of choice for many companies. Factoring is very common in certain industries, such as the clothing industry.

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    Factoring

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    Factoring is a financial transaction whereby a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) factoring is the cash-management tool of choice for many companies. Factoring is very common in certain industries, such as the clothing industry.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    7 views4 pages

    Factoring: Presented By-Rahna K K Rajesh PH Firoz Sudarman

    Uploaded by

    Rehna Mohammed Ali
    Factoring is a financial transaction whereby a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) factoring is the cash-management tool of choice for many companies. Factoring is very common in certain industries, such as the clothing industry.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    factoring

    Presented byRahna K K Rajesh PH Firoz sudarman

    What is factoring.
    Factoring is a financial transaction whereby a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount. One of the oldest forms of business financing, factoring is the cash-management tool of choice for many companies. Factoring is very common in certain industries, such as the clothing industry, where long receivables are part of the business cycle.

    Factoring is the Sale of Book Debts by a firm (Client) to a financial institution(Factor) on the understanding that the Factor will pay for the Book Debts as and when they are collected or on a guaranteed payment date. Normally, the Factor makes a part payment (usually upto 80%) immediately after the debts are purchased thereby providing immediate liquidity to the Client.

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