Advertisements
Advertisements
Question
Answer the question briefly.
What is meant by factoring?
Short Note
Solution
Factoring implies raising finance through the sale or mortgage of book debts. The finance companies provide finance to business concerns through the outright purchase of accounts receivables. The debtors of the firm make payments to it which in turn forwards them to the finance company.
shaalaa.com
Short-term Sources of Funds - Factoring
Is there an error in this question or solution?
