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Accounts Receivable Factoring 0 0 {{{keywords}}} {{{description}}}
Factoring
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Latest revision as of 01:34, 22 August 2020
Accounts Receivable Factoring is a financial service involving the conversion of credit bills into cash. The Factor assesses the risk of the list of Buyers, their credit rating, amounts and aging and other terms, and develops an factoring proposal. Upon acceptance the Seller transfers all rights to the Factor. The Factor will pay in cash up to 80-90% of the amount due, less commission. The Seller writes of the balance as uncollectible or similar.
Factoring services include:
- Purchase of book debts and receivables
- Administration of sales ledger for clients
- Prepayments of debts (partial or full)
- Collections of debts or receivables
- Cover credit risk of the suppliers
- Buy/sell book debts of customers without recourse