GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Provision of Specialised Services relating to credit investigation
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Purchase and Collection of debts
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Sales ledger management
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All of the above
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Detailed explanation-1: -Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount. A business will sometimes factor its receivable assets to meet its present and immediate cash needs.
Detailed explanation-2: -Parties Involved in Factoring The three parties involved in a factoring arrangement are the seller, the debtor, and the factor.
Detailed explanation-3: -Factoring is also known as receivables factoring or invoice financing. A factoring company buys the invoices or debts of another company. The company that sells its receivables thus has the advantage that it receives payment immediately, even if the deadline for the receivable has not yet expired.
Detailed explanation-4: -Step 1: Choose A Factoring Company. The first step to start invoice factoring is choosing a credible factoring company. Step 2: Setup Your Account. Step 3: Send Invoices & Get Cash. Step 4: Factoring Company Sends Invoices To Your Customer. Step 5: Customer Pays the Invoice. 14-Feb-2018