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Bulk Agency Factoring:
In this category factoring is essentially used as a method of financing book debts. In this sort of factoring the client continues to administer credit and keep sales ledger. The factor finances the book debts against bulk either upon recourse or lacking of recourse. This type of factoring became well-liked with the development of consumer durable market where credit management is not a difficulty, but the firms need temporary financial accommodation.
Non-Notification Factoring:
In this sort of factoring customers are not informed regarding the factoring agreement. The factor executes all the usual functions without disclosing to customer which they own the book debts.
The Baumol Model in 1952 considers cash management complication as same to inventory management problem. For itself the firm attempts to minimize the total cost that is the sum of
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