Few Structures of Factoring 0% 20 What is the main advantage of reverse factoring for the buyer? It enables the buyer to negotiate higher discounts with suppliers It transfers the risk of non-payment to the factor It allows the buyer to extend payment terms with suppliers It reduces the buyer's overall credit risk From the seller’s perspective, how does non-recourse factoring benefit their cash flow management? By allowing the seller to delay payments to suppliers By eliminating the need for collateral By offering a higher advance rate By transferring the risk of debtor non-payment to the factor 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 It depends upon the factor No Yes How does factoring benefit the buyer in a supply chain? It extends the buyer’s payment terms with the seller It increases the buyer’s need for working capital It reduces the buyer’s financing costs It forces the buyer to pay upfront for goods Why might a seller choose invoice discounting over factoring? To maintain control over their customer relationships To transfer credit risk to a third party To reduce the cost of financing To receive immediate cash for every invoice 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 Please enter your name and email address to view the results. Your score is The average score is 48% LinkedIn Facebook Twitter 0%
