Ask Question
29 June, 03:47

Why would firms that rely heavily on credit sales find factoring attractive?

+2
Answers (1)
  1. 29 June, 04:01
    0
    From my understanding, factoring is a specific transaction in which a business sells its invoices to a factor, which is a third party commercial financial company. This process is completed so that the business can get cash quicker than it would to wait for a customer’s payment. With factoring, a company will have more more more flexibility because the funds are not restricted, rather than having to deal with a typical bank loan
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Why would firms that rely heavily on credit sales find factoring attractive? ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers