Factored debtors
This query is : Resolved
26 May 2014
what do you mean by when a company factored its debtor's to bank?
PRADEEP KUMAR VATS
(Expert)
02 June 2014
Hi Saurabh
I have dealt with one of the company which is doing the business of factoring in which they buy the debtors of various companies by paying them half payment initially & half after realisation from debtors & How they were earning
i) By discounting charges
ii) Administration charges
iii)Interest for realisation after due date etc.
so mutatis mutandis u can apply for the bank.
Regards
Pradeep Kumar
I have dealt with one of the company which is doing the business of factoring in which they buy the debtors of various companies by paying them half payment initially & half after realisation from debtors & How they were earning
i) By discounting charges
ii) Administration charges
iii)Interest for realisation after due date etc.
so mutatis mutandis u can apply for the bank.
Regards
Pradeep Kumar
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