Understanding Business
Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
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Chapter 18.4, Problem 12TP
Summary Introduction

To discuss: The mesaing of factoring.

Introduction: Factoring refers to a process in which company sells its account receivable to third party at discount in order to increase capital.

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Students have asked these similar questions
Explain the process of factoring. What is the value of factoring to a company that sells its receivables?
What is the reason why most startup firms are not qualify for a factoring scheme to earn cash?
What is the reason that startup companies are generally not eligible to receive cash through a factoring program?
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