How does accounts receivable factoring work, Financial Management

Assignment Help:

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

Factoring is when one firm trade accounts receivable (AR) to another. The purchasing firm is called as a factor. The factor makes a profit by buying the AR at a discount. Its risk is that few of the AR may default. The selling firm obtains the cash it needs.

Related Discussions:- How does accounts receivable factoring work

Operating cycle, Discuss the applicability of the operating cycle to poultr...

Discuss the applicability of the operating cycle to poultry business in Uganda(consider broilers)

Business analysis, 1. Each student has been allocated one Australian compan...

1. Each student has been allocated one Australian company. This information is available in the unit website. You should check that a company is assigned to you. 2. It is your r

Determine the management buy-outs, Determine the Management buy-outs ...

Determine the Management buy-outs Management buy-outs (MBOs) The management of company buy out the shareholders. Management will usually require financial backers (ventu

Depreciation expense and investment in property plant, Use the excel spread...

Use the excel spreadsheet to project the net income for Winnebago from assumptions about key revenue & expense items. Use the following assumptions to evaluate the projected net

Calculate the rate of return, A Life Insurance Company invested $10,000,000...

A Life Insurance Company invested $10,000,000 in pure-discount U.S. bonds in May 1995 while the exchange rate was 80 yen per dollar. The insurance company liquidated the investment

Accounts, XYZ Ltd is a group of doctors, dentists, professional sports play...

XYZ Ltd is a group of doctors, dentists, professional sports players and celebrities with excess funds who wish to find small companies with great innovative ideas and invest in th

Average collection period ratio, What is Average Collection Period Ratio? P...

What is Average Collection Period Ratio? Please provide me report on Average Collection Period Ratio.

Arbitrage-free valuation approach, The main drawback of the tradition...

The main drawback of the tradition approach of valuation is that it discounts every cash flow using the same discount rate. For example, let us take 5-year (7.00 per ce

Important features floating rate notes, Reference Index Every FRN choos...

Reference Index Every FRN chooses its own reference index upon which the calculation of each successive new coupon is based. The most commonly used reference index is LIBOR. It

.FMAC 503 assignment, solution to assignement

solution to assignement

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages