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If a company sells its receivable to another party to raise funds, it is known as?

<p><span>a- Securitization </span></p> <p><span>b- Factoring</span></p> <p><span><span>c- Pledging </span></span></p> <p><span><span>d- None of the above</span></span></p> <p> </p>

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Question ajoutée par Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town
Date de publication: 2015/01/04
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
par VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Option (b) >>>>>>>>>>>>>  Factoring

Sahar Alech
par Sahar Alech , Auditor / Financial Manager , Accounting Services Office

Factoring is the answer

Nissam Khalid
par Nissam Khalid , Finance Manager , Saudi Specialized Pipes

B) Factoring – It is a type of debt finance in which a business sells its accounts receivables (i.e., invoices) to a third party (called a factor) at a discount. This practice is common in International Trade Finance by Exporters who wish to sell their receivables.

 

Lesley Lanag CMA CPA
par Lesley Lanag CMA CPA , Senior Accountant , Takaful Emarat Insurance (P.S.C)

B. Factoring

 

(Off-Balance Sheet Financing)

Waqas Ali Ilyas Waqas
par Waqas Ali Ilyas Waqas , Accounts & Billing Officer , New Shalimar Steel Industries Pvt Ltd.

b

Utilisateur supprimé
par Utilisateur supprimé

b- Factoring

All agreed it

 

I join them

Mir Mujtaba Ali
par Mir Mujtaba Ali , Internal Audit Manager , Confidential

b. factoring - rightly by experts

Utilisateur supprimé
par Utilisateur supprimé

Selling its receivables to another party called as Factorizing. Companies do so because they need liquidity in order to meet their day to day activity. although company does incur  some losses in practicing this.

Amit Agrawal
par Amit Agrawal , Manager - Accounts & Finance , Signet Industries Limited

b - Factoring

samir baddour
par samir baddour , Manager Corporate Finance , Baniyas Investments and Development Company

Factoring and receivables are sold at discount

Ayman Mohammad Ahmad Abu Zahieh
par Ayman Mohammad Ahmad Abu Zahieh , Senior Accountant – Acting Financial Manager , RED TAG- Matajir Group

The answer in (D) Factoring.

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