Full service non recourse, Managerial Accounting

Assignment Help:

Full Service Non Recourse: in this method the book debts are purchased through the factor assuming 100 percent credit risk. In case of default through the debtor the whole risk is borne through the factor. Moreover to this the factor may also advance 80 to 90% of the books debts instantly to the client. Payments are made straight to the factor through the customers. The factor also keeps the accounts and sales ledger and prepares according to the age reports of good book debts. These kind of factoring services are particularly suited to the subsequent conditions as:

a) Amounts concerned per customer are relatively substantial

b) There are large numbers of customers of whom the client cannot have personal knowledge

c) Clients need to have 100 percent cover rather than 70 to 80% cover provided via the insurance companies.


Related Discussions:- Full service non recourse

Positioning, Positioning An essential part of the planning process is p...

Positioning An essential part of the planning process is positioning the organization to attain its goals. Positioning is a wide concept and depends on gathering and evaluating

Explain the product life cycle costing, Product life cycle costing It i...

Product life cycle costing It is an approach used to give a long term picture of product line profitability feedback on the effectiveness of life cycle planning and cost data t

Determining optimum cash balance, One of the main deities of the financial ...

One of the main deities of the financial manager is to keep a sound liquidity position for the firm hence the dues are settled as and while they mature. Separately from this the fi

Consistent Descion framing, What does it mean when we say consistency is th...

What does it mean when we say consistency is the central feature of economic rationality?

Compute the value of share of a company, Compute the value of share of a co...

Compute the value of share of a company? A company paid dividend amounting to Rs. 0.75 each share during the last year. The company is supposed to pay Rs. 2.00 per share throug

Accounting, what is Computerized Processing Systems

what is Computerized Processing Systems

Management''s statement of responsibility, 1. A firm's independent auditors...

1. A firm's independent auditors have the responsibility to: a. assess the firm's accounting policies. b. ascertain the firm's profit potential. c. uncover all fraudulent

Describe the limitations of management accounting, Describe the Limitations...

Describe the Limitations of management accounting: 1. Based on accounting information: the correctness and effectiveness of managerial decisions will depend upon the quality

What are the characteristics of standard costing, Characteristics of standa...

Characteristics of standard costing 1) Flow of information : in a standard costing system cost information flows in a straight forward manner as material is requisitioned and

Introduction to performance evaluation, Introduction to Performance Evaluat...

Introduction to Performance Evaluation Performance evaluation deals with the area of MA that is concerned with: 1) Holding individual managers responsible for certain aspect

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