Few Structures of Factoring 0% 35 What distinguishes reverse factoring from traditional factoring? Reverse factoring is initiated by the buyer, while traditional factoring is initiated by the seller Reverse factoring involves a higher interest rate Reverse factoring is only available for international transactions If I am a service provider in the KPO (Knowledge Process Outsourcing) segment serving a large American bank, can I get my monthly invoice financed through factoring? All of the above Yes It depends upon the factor No Why might a seller choose invoice discounting over factoring? To transfer credit risk to a third party To reduce the cost of financing To receive immediate cash for every invoice To maintain control over their customer relationships From the seller’s perspective, how does non-recourse factoring benefit their cash flow management? By transferring the risk of debtor non-payment to the factor By offering a higher advance rate By eliminating the need for collateral By allowing the seller to delay payments to suppliers How does factoring benefit the buyer in a supply chain? It reduces the buyer’s financing costs It forces the buyer to pay upfront for goods It extends the buyer’s payment terms with the seller It increases the buyer’s need for working capital What is the main advantage of reverse factoring for the buyer? It reduces the buyer's overall credit risk It transfers the risk of non-payment to the factor It allows the buyer to extend payment terms with suppliers It enables the buyer to negotiate higher discounts with suppliers Please enter your name and email address to view the results. Your score is The average score is 53% LinkedIn Facebook Twitter 0%
