Ask Question
BusinessBusiness
19 September, 12:24

Why would firms that rely heavily on credit sales find factoring attractive?

+3
Answers (1)
  1. 19 September, 13:53
    0
    From my understanding, factoring is a specific transaction in which a business sells its invoices to a factor, which is a third party commercial financial company. This process is completed so that the business can get cash quicker than it would to wait for a customer’s payment. With factoring, a company will have more more more flexibility because the funds are not restricted, rather than having to deal with a typical bank loan
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Why would firms that rely heavily on credit sales find factoring attractive? ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Consider the supply of peanut butter. 1) Which of the following would cause a movement along the supply curve (a change in the quantity supplied) for peanut butter? Check all that apply.
Answers (1)
On average hotel guests who take elevators weigh about 150 pounds
Answers (1)
Milliken Company paid $2.2 million to purchase stock in another company, $1.0 million to repurchase treasury shares, $.5 million to buy short-term investments, sold used equipment for $.8 million when its book value was $.
Answers (1)
Kacey purchases custom windows from Custom Windows, Inc., and wants to ensure that the goods are shipped by common carrier and that title does not pass until the windows are tendered to her address. The contract should specify that it is a: a.
Answers (1)
Mandy, a 9-month-old infant, saw a little girl in a toy store pushing buttons on a musical toy that plays a different song for each button.
Answers (1)
New Questions in Business
Sparrow co. is currently operating at 80% of capacity and is currently purchasing a part used in its manufacturing operations for $8.00 a unit. the unit cost for sparrow co. to make the part is $9.00, which includes $0.60 of fixed costs.
Answers (1)
Who is responsible for participating in the discussion at a performance review? a. The supervisor b. The employee c. The coworkers d. Both the supervisor and the employee e. Both the employee and the coworkers
Answers (1)
Using the information given here, what are the earnings per share for ghi company? • earnings = $375,000 • number of shares outstanding = 150,000 • price per share = $60 • book value per share = $20
Answers (1)
The buying process begins with a comparison of available alternatives. a. True b. False
Answers (1)
When computing the cost per equivalent unit, the weighted-average method of process costing considers: A) costs incurred during the current period only. B) costs incurred during the current period plus cost of ending work in process inventory.
Answers (1)
Home » Business » Why would firms that rely heavily on credit sales find factoring attractive?
Sign Up Forgot Password?