Accounts Receivables Factoring | Definition | Types

In this video, we will study definition of Accounts Receivables Factoring along with its types and some advantages.

𝐖𝐡𝐚𝐭 𝐢𝐬 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐬 𝐑𝐞𝐜𝐞𝐢𝐯𝐚𝐛𝐥𝐞𝐬 𝐅𝐚𝐜𝐭𝐨𝐫𝐢𝐧𝐠?
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It is a financial product used by firms to raise funds rapidly by selling their accounts to another specialized company known as "Factor".

𝐀𝐝𝐯𝐚𝐧𝐭𝐚𝐠𝐞𝐬 𝐨𝐟 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐬 𝐑𝐞𝐜𝐞𝐢𝐯𝐚𝐛𝐥𝐞𝐬 𝐅𝐚𝐜𝐭𝐨𝐫𝐢𝐧𝐠
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#1 - Provides business with emergency cash flow.

#2 - Helps the company concentrate on processing value services as factor takes care of the payment collection issue in exchange for the major factor fees.

#3 - Generates a lot of financing for firms with low (or no) credit history as accounts receivables factoring firms discount receipts based on the client's credit history and not the company.

𝐓𝐲𝐩𝐞𝐬 𝐨𝐟 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐬 𝐑𝐞𝐜𝐞𝐢𝐯𝐚𝐛𝐥𝐞𝐬 𝐅𝐚𝐜𝐭𝐨𝐫𝐢𝐧𝐠
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#1 - Recourse Factoring of Accounts Receivable

#2 - Non - Recourse Factoring of Accounts Receivable

If you want to know more about 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐬 𝐑𝐞𝐜𝐞𝐢𝐯𝐚𝐛𝐥𝐞𝐬 𝐅𝐚𝐜𝐭𝐨𝐫𝐢𝐧𝐠 , you can visit the 𝐥𝐢𝐧𝐤 𝐩𝐫𝐨𝐯𝐢𝐝𝐞𝐝 𝐡𝐞𝐫𝐞:- https://www.wallstreetmojo.com/accoun...

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