Invoice discounting or factoring, Managerial Accounting

Assignment Help:

If a company creates sales to a number of customers on credit terms this will have to wait for two or still three months before its debtors pay that they owe. It means that the debtors should be financed through the company, and the concept of factoring is to Passover to the finance of debtors by the selling company to a particular factoring, finance Bank or company. After reviewing, the factoring company's amount of the debts and the creditworthiness of the debtors, such will pay the selling company, on the end of the month wherein the sales were completed, the amount this can expect to obtain from the debtors as less a percentage. In this method the selling company receives its money one or two months previous than would generally be the case. The factoring company will after that collects the debts from the selling company's customers while they fall due.


Related Discussions:- Invoice discounting or factoring

Electronic fund transfer, By electronic fund transfer the collection float ...

By electronic fund transfer the collection float can be completely removed the other benefit of electronic fund transfer is instant updating of accounts and reporting of balances a

Budget and Budgetary Control, I am to write thesis on Budget and Budgetary ...

I am to write thesis on Budget and Budgetary Contro. Can you please help me with contents and notes?

Explain briefly about variances, Normal 0 false false false...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Types of games, Types of games Four basic ways in which competitive sit...

Types of games Four basic ways in which competitive situations (or games) can be classified are: (a) Number of Competitors: In game theory a competitor is characteriz

Hold-up problem or another problem, According to the Philadelphia Inquirer,...

According to the Philadelphia Inquirer, in 2004 the city of Philadelphia planned to spend $14 million to convert the Convention Center into an appropriate venue for the Republican

Strategic positioning, Strategic Positioning The company must identify ...

Strategic Positioning The company must identify its strategic choices. This can be done from the firm’s objectives, which emanates from the firms mission. Strategies have to be

#, Describe the important role that the corporate level strategy has in rel...

Describe the important role that the corporate level strategy has in relation to the development of the business and functional strategy in a multi -business organization

How much was Topaz’s operating income (income before taxes), How much was T...

How much was Topaz’s operating income (income before taxes) last year?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd