Introduction to Factoring 0% 82 What is factoring in trade finance? It is like bill discounting A form of guarantee A form of financing where a business sells its accounts receivable to a factor A type of insurance What is the typical factoring fee structure in Factoring? Monthly subscription fee Fixed percentage of the invoice amount Variable fee based on the debtor's credit score As per SOFR In which industries is factoring most prevalent? Manufacturing All of the above Retail, Hotel & Healthcare IT Services and software Notice of Assignment is sent to: Seller Import Factor Credit Insurer Buyer How does factoring benefit sellers? Increases debt burden Decreases business efficiency Provides immediate cash flow Raises taxes Name two parties involved in a factoring transaction. Factor and government Seller and factor Buyer and seller Bank and government Please enter your name and email address to view the results. Your score is The average score is 56% LinkedIn Facebook Twitter 0%
