Working capital management Flashcards

1
Q

What is factoring?

A

An arrangement to have debts collected by a factor company, which advances a portion of the company its due to collect.

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2
Q

Why use factoring?

A

Useful where a company has a poor record of collecting amounts due, or is facing problems raising short-term finance.

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3
Q

What is invoice discounting?

A

The purchase of trade debts at a discount

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