Introduction to Factoring 0% 150 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 Name two parties involved in a factoring transaction. Bank and government Buyer and seller Seller and factor Factor and government Notice of Assignment is sent to: Credit Insurer Buyer Seller Import Factor What is the typical factoring fee structure in Factoring? Fixed percentage of the invoice amount Monthly subscription fee Variable fee based on the debtor's credit score As per SOFR How does factoring benefit sellers? Raises taxes Increases debt burden Provides immediate cash flow Decreases business efficiency In which industries is factoring most prevalent? Retail, Hotel & Healthcare All of the above Manufacturing IT Services and software Please enter your name and email address to view the results. Your score is The average score is 55% LinkedIn Facebook Twitter 0%
