Introduction to Factoring 0% 151 Name two parties involved in a factoring transaction. Factor and government Bank and government Buyer and seller Seller and factor What is factoring in trade finance? A type of insurance A form of guarantee A form of financing where a business sells its accounts receivable to a factor It is like bill discounting How does factoring benefit sellers? Provides immediate cash flow Increases debt burden Decreases business efficiency Raises taxes What is the typical factoring fee structure in Factoring? Fixed percentage of the invoice amount As per SOFR Monthly subscription fee Variable fee based on the debtor's credit score In which industries is factoring most prevalent? Retail, Hotel & Healthcare IT Services and software All of the above Manufacturing Notice of Assignment is sent to: Seller Import Factor Buyer Credit Insurer Please enter your name and email address to view the results. Your score is The average score is 55% LinkedIn Facebook Twitter 0%
