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

What is production cost, What is Production cost It begins with the sup...

What is Production cost It begins with the supplying of materials, labour and services and ends with the primary packing of the product. Therefore, it includes the cost of d

Case study, Please help me with these problems Merry -Go -Around (MGR) ...

Please help me with these problems Merry -Go -Around (MGR) a clothing retailer located primarily in shopping malls, was founded in 1968. By the early 1990s, the company had gon

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 duties of the public company aob, What are the duties of the P...

What are the duties of the Public Company Accounting Oversight Board?

Cash and treasury management, Cash is a significant current asset for the o...

Cash is a significant current asset for the operations of business. Cash is the fundamental input that maintains business running smoothly and continuously. In excess of cash and l

Break even Analysis, I am part of a marketing group, and we are working on ...

I am part of a marketing group, and we are working on a project for a local cable company,they currently serve 3,200 customers and sell 50 wireless boxes a month,what I need to do

Full service recourse factoring, Full Service Recourse Factoring : In this ...

Full Service Recourse Factoring : In this kind of factoring the client has to bear the risk of default made through the debtors. There the factor had advanced funds against book de

Draw a time line for the assembly department, Computing equivalents units a...

Computing equivalents units and assigning costs to completed units and ending work in process; no beginning inventory or cost transferred in (30 -45min) Sue Electronics makes CD

Illustrate the techniques used in management accounting, Determine the The ...

Determine the The tools and techniques used in management accounting 1. Financial policy and accounting : every concern has to take a decision about the sources of raising fun

Explain the cost according to controllability, Explain the cost According t...

Explain the cost According to controllability: Controllable cost: this is a cost which can be inclined by the action of a specified member of an undertaking. The organization

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