Services of an overseas factor, Financial Management

Assignment Help:

Several overseas factors are subsidiaries of UK banks or their agents who offer facilities to companies with export credit sales usually of above £0.25m. Overseas factors carry out largely the same range of functions as factors in UK markets namely debt collection and administration of accounts payable and provision of finance.

An additional as well as highly valuable service particularly for smaller firms without large overseas forces is the provision of advice on the creditworthiness of overseas customers using their own experience or tapping the expertise of agents who act on their behalf in the pursuit of debts.

If factoring is offered on a non-recourse basis the factor will bear the risk of bad debts therefore enabling the exporter to sell on open account without risk of default. Even permitting for the additional charge made by the factor this may well be a much cheaper means of arranging overseas transactions than more formal methods such as letters of credit.


Related Discussions:- Services of an overseas factor

Partnership, Par tnership A legally authorized business form in wh...

Par tnership A legally authorized business form in which two or more partners are co-owners, sharing profits, losses, and liabilities related with the business they own.

Call and notice money, These funds represent borrowings made for a pe...

These funds represent borrowings made for a period of one day to upto a fortnight. However, the mechanism adopted to lend funds to the call and the notice money m

Operating cycle of company, calculate the operating cycle of company which ...

calculate the operating cycle of company which gives the following details relating to its operations. Particular raw material consumption per annum 842000. Annual cost of producti

Enhance or maintain its image and reputation, a) Marketing might be vital t...

a) Marketing might be vital to an organisation such as WHSG for several reasons, including: • The need to be a focus for the right kind of students to the school (there are riva

Define the term- profit, Define the term- profit The term "profit" can ...

Define the term- profit The term "profit" can be used in two senses. As an owner-oriented concept it refers to amount and share of national income that is paid to owners of bus

Objectives of averaging, The two main objectives are: ...

The two main objectives are: To get at a single value: Measures of central value, by considering the mass of data in one single

Multi-period compounding or else future value, Multi-period Compounding or ...

Multi-period Compounding or else Future Value :- If the company determination compounding interest half-yearly (semi-annually) instead of annually then investors will gain as he wi

What are the financing and investing decision, What are the Financing and i...

What are the Financing and investing decision Financing and investing decisions are closely related as the company is going toraise money to invest in a project or assets. Thos

Securities and exchange commission (sec), SEC is the Regulatory body for...

SEC is the Regulatory body for investor protection in the United States which is created through the Securities Exchange Act of 1934.

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