Understanding Business
Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
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Chapter 18.4, Problem 12TP
Summary Introduction

To discuss: The mesaing of factoring.

Introduction: Factoring refers to a process in which company sells its account receivable to third party at discount in order to increase capital.

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Explain the functioning of factoring. How does a company selling its receivables benefit?
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