Introduction to Factoring 0% 61 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 Notice of Assignment is sent to: Import Factor Seller Buyer Credit Insurer What is the typical factoring fee structure in Factoring? Monthly subscription fee Fixed percentage of the invoice amount As per SOFR Variable fee based on the debtor's credit score How does factoring benefit sellers? Provides immediate cash flow Decreases business efficiency Increases debt burden Raises taxes In which industries is factoring most prevalent? IT Services and software All of the above Manufacturing Retail, Hotel & Healthcare Name two parties involved in a factoring transaction. Factor and government Bank and government Seller and factor Buyer and seller Please enter your name and email address to view the results. Your score is The average score is 57% LinkedIn Facebook Twitter 0%
