becker cpa

Limited Period Offer Avail 20% discount in all subjects CA,CS and CMA,Coupon- OFFER20 Call: 088803-20003

CA Final Online Classes

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Invoice factoring


MPR sanjay Kumar (CA student)     27 January 2021

MPR sanjay Kumar
CA student 
 8 likes  204 points

| My Other Post
what is mean by invoice factoring with examples
ayusmita

ayusmita (Tax consultant)     27 January 2021

ayusmita
Tax consultant 
 371 likes  5573 points

View Profile | My Other Post
Invoice factoring is an act of selling the debt on one or more outstanding invoices to another business invoice
the business party that buys your invoice debt is known as factor after that the factor pays you an amount which is equal to the invoices value or say what the invoices worth minus a percentage

for example you have a business of landscaping
you sent a invoices of payable worth rs 50000 in 60 days to your client but at the same time you need money urgently to buy a product for expansion of your landscaping business
so you factor the same invoice to your client
the factoring company gives you 50000 minus a few percentage to cover their rates
as a result you have the cash now to buy the product as well as client pays his invoice too the factor will have their money too

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  



Related Threads


Loading


Trending Tags