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

Planning-role of management accountant , Planning Planning is the funda...

Planning Planning is the fundamental function of the management by means of which the managers decide: What goals are to be accomplished How they will be accomplished.

Capital budgeting, what is the computation procedure of accounting rate of ...

what is the computation procedure of accounting rate of return?

Inventory control decisions, INVENTORY CONTROL DECISIONS Factories, wor...

INVENTORY CONTROL DECISIONS Factories, workshops, engineering departments handle raw materials used in the manufacture of products. The main objectives in handling these materi

Identify and briefly describe four trends in macro market e, identify and b...

identify and briefly describe four trends in macro market environment which influence on the selected industry?

Steps of choosing an accounting based performance, Steps of choosing an acc...

Steps of choosing an accounting based performance measure Consider the overall goal of the organization as a whole. It is important to choose a measure of accomplishment that r

Types of cost classifications, can you better explain to me the classificat...

can you better explain to me the classification by traceability and the classification by function?

Innovations of management accounting and control, Implementing management a...

Implementing management accounting and control innovations are often problematic. Provide a brief commentary around the key factors necessary to give such innovations the best chan

Model construction, Model Construction The success of a simulation exer...

Model Construction The success of a simulation exercise is related to the predictive quality of the underlying model, so that considerable care should be taken with model const

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