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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 Work in Process account for Monty's Company contained the following entries: Work in Process Account Debit of $40,000 for direct raw materials Debit of $60,000 for direct labor
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Two types of costs concerned in factoring are as: 1) The service fee or factoring commission 2) The interest on advances granted through the factor to the firm. Factoring
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