1066:. An example of factoring is the credit card. Factoring is like a credit card where the bank (factor) is buying the debt of the customer without recourse to the seller; if the buyer doesn't pay the amount to the seller the bank cannot claim the money from the seller or the merchant, just as the bank in this case can only claim the money from the debt issuer. Factoring is different from invoice discounting, which usually doesn't imply informing the debt issuer about the assignment of debt, whereas in the case of factoring the debt issuer is usually notified in what is known as notification factoring. One more difference between the factoring and invoice discounting is that in case of factoring the seller assigns all receivables of a certain buyer(s) to the factor whereas in invoice discounting the borrower (the seller) assigns a receivable balance, not specific invoices. A factor is therefore more concerned with the credit-worthiness of the company's customers. The factoring transaction is often structured as a purchase of a
568:. However, in some other markets, such as the UK, invoice discounting is considered to be a form of factoring, involving the "assignment of receivables", that is included in official factoring statistics. It is therefore also not considered to be borrowing in the UK. In the UK the arrangement is usually confidential in that the debtor is not notified of the assignment of the receivable and the seller of the receivable collects the debt on behalf of the factor. In the UK, the main difference between factoring and invoice discounting is confidentiality. Scottish law differs from that of the rest of the UK, in that notification to the account debtor is required for the assignment to take place. The Scottish Law Commission reviewed this position and made proposals to the
647:, and the factor obtains the right to receive the payments made by the debtor for the invoice amount, and is free to pledge or exchange the receivable asset without unreasonable constraints or restrictions. Usually, the account debtor is notified of the sale of the receivable, and the factor bills the debtor and makes all collections; however, non-notification factoring, where the client (seller) collects the accounts sold to the factor, as agent of the factor, also occurs. The arrangement is usually confidential in that the debtor is not notified of the assignment of the receivable and the seller of the receivable collects the debt on behalf of the factor. If the factoring transfers the receivable "
1090:
limit and restrict funding in such occasions where the debtor is found not credit worthy, or the invoice amount represents too big of a portion of the business's annual income. Another area of concern is when the cost of invoice factoring is calculated. It's a compound of an administration charge and interest earned overtime as the debtor takes time to repay the original invoice. Not all factoring companies charge interest over the time it takes to collect from a debtor, in this case only the administration charge needs to be taken into account although this type of facility is comparatively rare. There are major industries which stand out in the factoring industry which are:
779:. As stated, the size of the cash balance the firm decides to hold is directly related to its unwillingness to pay the costs necessary to use a factor to finance its short term cash needs. The problem faced by the business in deciding the size of the cash balance it wants to maintain on hand is similar to the decision it faces when it decides how much physical inventory it should maintain. In this situation, the business must balance the cost of obtaining cash proceeds from a factor against the opportunity cost of the losing the Rate of Return it earns on investment within its business. The solution to the problem is:
1272:
to deliver the benefits of factoring with the convenience and ease afforded by the internet. Some companies use technology to automate some of the risk and back-office aspects of factoring and provide the service via a modern web interface for additional convenience. This enables them to serve a broader range of small businesses with significantly lower revenue requirements without the need for monthly minimums and long-term contracts. Many of these companies have direct software integrations with software programs such as
Quickbooks, allowing businesses to immediately receive funding without an application.
980:
process involves detailed underwriting, during which time the factoring company can ask for additional documents, such as documents of incorporation, financials, and banks statements. If approved, the business will be set up with a maximum credit line from which they can draw. In the case of notification factoring, the arrangement is not confidential and approval is contingent upon successful notification; a process by which factoring companies send the business's client or account debtor a Notice of
Assignment. The Notice of Assignment serves to
42:
1246:. In part this occurred because of the structure of the US banking system with its myriad of small banks and consequent limitations on the amount that could be advanced prudently by any one of them to a firm. In Canada, with its national banks the limitations were far less restrictive and thus factoring did not develop as widely as in the US. Even then, factoring also became the dominant form of financing in the Canadian textile industry.
1162:(GAAP), receivables are considered "sold", under FASB ASC 860-10 (or under Statement of Financial Accounting Standards No. 140, paragraph 112), when the buyer has "no recourse". Moreover, to treat the transaction as a sale under GAAP, the seller's monetary liability under any "recourse" provision must be readily estimated at the time of the sale. Otherwise, the financial transaction is treated as a
739:
or apparel, for example, financially sound companies factor their accounts simply because this is the historic method of financing. The use of factoring to obtain the cash needed to accommodate a firm's immediate cash needs will allow the firm to maintain a smaller ongoing cash balance. By reducing the size of its cash balances, more money is made available for investment in the firm's growth.
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offering payroll and back office support with the factoring facility; a wholesale or /distribution factor may not offer this additional service. These differences can affect the cost of the facility, the approach the factor takes when collecting credit, the administration services included in the facility and the maximum size of invoices which can be factored.
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term cash needs in those periods in which these needs exceed the cash flow. Each business must then decide how much it wants to depend on factoring to cover short falls in cash, and how large a cash balance it wants to maintain in order to ensure it has enough cash on hand during periods of low cash flow.
1366:
Distinguishing between assignment of the responsibility to perform the work and the assignment of funds to the factor is central to the customer or debtor's processes. Firms have purchased from a supplier for a reason and thus insist on that firm fulfilling the work commitment. Once the work has been
1222:
legislation governing the assignment of moneys owed by it still reflects this stance as does provincial government legislation modelled after it. As late as the current century, the courts have heard arguments that without notification of the debtor the assignment was not valid. In the United States,
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While factoring fees and terms range widely, many factoring companies will have monthly minimums and require a long-term contract as a measure to guarantee a profitable relationship. Although shorter contract periods are now becoming more common, contracts and monthly minimums are typical with "whole
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The advance rate is the percentage of an invoice that is paid out by the factoring company upfront. The difference between the face value of the invoice and the advance rates serves to protect factors against any losses and to ensure coverage for their fees. Once the invoice is paid, the factor gives
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The discount rate is the fee a factoring company charges to provide the factoring service. Since a formal factoring transaction involves the outright purchase of the invoice, the discount rate is typically stated as a percentage of the face value of the invoices. For instance, a factoring company may
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When a company decides to factors account receivables invoices to a principles factors or broker, it needs to understands the risks and rewards involved with factoring. Amount of funding can vary depending on the specific accounts receivables, debtor and industry that factoring occurs in. Factors can
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or financial difficulty of a major customer. A second key service is the operation of the accounts receivable function. The services eliminate the need and cost for permanent skilled staff found within large firms. Although today even they are outsourcing such back-office functions. More importantly,
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to their face value when it calculates that it will be better off using the proceeds to bolster its own growth than it would be by effectively functioning as its "customer's bank." Accordingly, factoring occurs when the rate of return on the proceeds invested in production exceed the costs associated
738:
Factoring is a method used by some firms to obtain cash. Certain companies factor accounts when the available cash balance held by the firm is insufficient to meet current obligations and accommodate its other cash needs, such as new orders or contracts; in other industries, however, such as textiles
1344:
Factoring is often used by haulage companies to cover upfront expenses, such as fuel. Factoring companies that cater to this niche offer services to help accommodate drivers on the road, including the ability to verify invoices and fund on copies sent via scan, fax or email, and the option to place
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To make the arrangement economically profitable, most factoring companies have revenue minimums (e.g. at least $ 500,000 in annual revenue) and require annual contracts and monthly minimums. More recently, several online factoring companies have emerged, leveraging aggregation, analytics, automation
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Spot factoring, or single invoice discounting, is an alternative to "whole ledger" and allows a company to factor a single invoice. The added flexibility for the business, and lack of predictable volume and monthly minimums for factoring providers means that spot factoring transactions usually carry
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Whereas the difference between the invoice face value and the advance serves as a reserve for a specific invoice, many factors also hold an ongoing reserve account which serves to further reduce the risk for the factoring company. This reserve account is typically 10–15% of the seller's credit line,
1310:
advances were first introduced in Canada but quickly spread to the United States. Typically, the process consists of an online application from a real estate agent, who signs a contract selling future commissions at a discount; the factoring company then wires the funds to the agent's bank account.
994:
Once the account is set up, the business is ready to start funding invoices. Invoices are still approved on an individual basis, but most invoices can be funded in a business day or two, as long as they meet the factor's criteria. Receivables are funded in two parts. The first part is the "advance"
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If cash flow can decrease drastically, the business will find it needs large amounts of cash from either existing cash balances or from a factor to cover its obligations during this period of time. Likewise, the longer a relatively low cash flow can last, the more cash is needed from another source
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Traditionally, factoring has been a relationship driven business and factoring transactions have been largely manual and frequently involving a face to-face component as part of the relationship building process or due-diligence phase. This is especially true for small business factoring, in which
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for "approved" accounts; maintain the history of payments by customers (i.e., accounts receivable ledger); daily management reports on collections; and, make the actual collection calls. The outsourced credit function both extends the small firm's effective addressable marketplace and insulates it
1336:, danger of "paid-when-paid" terms, existence of progress billing, use of withholding, and exposure to economic cycles most "generalist" factoring companies avoid construction receivables entirely. That has created another niche of factoring companies that specialize in construction receivables.
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By the first decade of the 21st century, a basic public policy rationale for factoring remains that the product is well-suited to the demands of innovative, rapidly growing firms critical to economic growth. A second public policy rationale is allowing fundamentally good business to be spared the
751:
Many businesses have cash flow that varies. It might be relatively large in one period, and relatively small in another period. Because of this, businesses find it necessary to both maintain a cash balance on hand, and to use such methods as factoring, in order to enable them to cover their short
1309:
Since the 2007 United States recession one of the fastest-growing sectors in the factoring industry is real estate commission advances. Commission advances work the same way as factoring but are done with licensed real estate agents on their pending and future real estate commissions. Commission
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The factoring process can be broken up into two parts: the initial account setup and ongoing funding. Setting up a factoring account typically takes one to two weeks and involves submitting an application, a list of clients, an accounts receivable aging report and a sample invoice. The approval
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Today factoring's rationale still includes the financial task of advancing funds to smaller rapidly growing firms who sell to larger more credit-worthy organizations. While almost never taking possession of the goods sold, factors offer various combinations of money and supportive services when
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Large firms and organizations such as governments usually have specialized processes to deal with one aspect of factoring, redirection of payment to the factor following receipt of notification from the third party (i.e., the factor) to whom they will make the payment. Many but not all in such
1300:
With advances in technology, some invoice factoring providers have adapted to specific industries. This often affects additional services offered by the factor in order to best adapt the factoring service to the needs of the business. An example of this includes a recruitment specialist factor
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and the web has accelerated the process while reducing costs. Today credit information and insurance coverage are instantly available online. The web has also made it possible for factors and their clients to collaborate in real time on collections. Acceptance of signed documents provided by
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This means that the factor cannot obtain additional payments from the seller if the purchased account does not collect due solely to the financial inability to pay of the account debtor; however, "quality recourse" still exists. In other words, the nonrecourse factor who assumes
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and thus, their underwriting models have not been market tested by an economic contraction. What's more, some of these new models rely on a market place lending format. It's unclear if this source of capital will be stable over time, as other companies, most notably,
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with factoring the receivables. Therefore, the trade-off between the return the firm earns on investment in production and the cost of utilizing a factor is crucial in determining both the extent factoring is used and the quantity of cash the firm holds on hand.
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Generally, the variability in the cash flow will determine the size of the cash balance a business will tend to hold as well as the extent it may have to depend on such financial mechanisms as factoring. Cash flow variability is directly related to two factors:
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has clear processes to be followed which distinguish between their work and payment sensitivities. Contracts direct with the US government require an assignment of claims, which is an amendment to the contract allowing for payments to third parties (factors).
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activities. The latter however evolved by extension to non-trade related financing such as sovereign debt. Like all financial instruments, factoring evolved over centuries. This was driven by changes in the organization of companies; technology, particularly
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Originally the industry took physical possession of the goods, provided cash advances to the producer, financed the credit extended to the buyer and insured the credit strength of the buyer. In
England the control over the trade thus obtained resulted in an
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charge 5% for an invoice due in 45 days. In contrast, companies that do accounts receivable financing may charge per week or per month. Thus, an invoice financing company that charges 1% per week would result in a discount rate of 6–7% for the same invoice.
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Factoring is commonplace in the construction industry because of the long payment cycles that can stretch to 120 days and beyond. However, the construction industry has features that are risky for factoring companies. Because of the risks and exposure from
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When a nonrecourse transaction takes place, the accounts receivable balance is removed from the statement of financial position. The corresponding debits include the expense recorded on the income statement and the proceeds received from the factor.
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In the latter half of the twentieth century the introduction of computers eased the accounting burdens of factors and then small firms. The same occurred for their ability to obtain information about debtor's creditworthiness. Introduction of the
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Debt factoring is also used as a financial instrument to provide better cash flow control especially if a company currently has a lot of accounts receivables with different credit terms to manage. A company sells its invoices at a
518:
to a forfaiter. Factoring is commonly referred to as accounts receivable factoring, invoice factoring, and sometimes accounts receivable financing. Accounts receivable financing is a term more accurately used to describe a form of
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and covers 80% to 85% of the invoice value. This is deposited directly to the business's bank account. The remaining 15% to 20% is rebated, less the factoring fees, as soon as the invoice is paid in full to the factoring company.
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that may diminish the invoice amount that is collectible from the accounts receivable are typically the responsibility of the seller, and the factor will typically hold back paying the seller for a portion of the receivable being
1907:
Factoring, Jones, Owen; Harvard
Business Review February 1939 and Factoring as a Financing Device, Silverman, Herbert R.; Harvard Business Review, September 1949; D. Tatge, D. Flaxman & J. Tatge, American Factoring Law (BNA,
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In the recruitment sector factoring is an effective solution, often used by temporary recruitment agencies who must ensure that their business has the available funds each week to make payment to the workers they have placed.
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costly, time-consuming trials and tribulations of bankruptcy protection for suppliers, employees and customers or to provide a source of funds during the process of restructuring the firm so that it can survive and grow.
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The healthcare industry makes for a special case in which factoring is much needed because of long payment cycles from government, private insurance companies and other third party payers, but difficult because of
728:
the factor must assume, and other services provided. The factor's overall profit is the difference between the price it paid for the invoice and the money received from the debtor, less the amount lost due to
643:
of the receivable transfers ownership of the receivable to the factor, indicating the factor obtains all of the rights associated with the receivables. Accordingly, the receivable becomes the factor's
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Factors often provide their clients four key services: information on the creditworthiness of their prospective customers domestic and international, and, in nonrecourse factoring, acceptance of the
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the factoring companies tend to be locally or regionally focused. The geographic focus helps them better mitigate risks that because of their smaller scale, they otherwise couldn't afford to take.
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related to clients and risk-covered debtors. Risk-covered debtors can be reinsured, which limit the risks of a factor. Trade receivables are a fairly low-risk asset due to their short duration.
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the funds directly onto a fuel card, which works like a debit card. Haulage factors also offer fuel advance programs that provide a cash advance to carriers upon confirmed pickup of the load.
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by 1949 the majority of state governments had adopted a rule that the debtor did not have to be notified, thus opening up the possibility of non-notification factoring arrangements.
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As a general rule, when cash flow tends to be positive on average. However, as mentioned, there are periods of time in which cash flow can be negative (more cash flows out than in).
1522:
J. Downes, J.E. Goodman, "Dictionary of
Finance & Investment Terms", Baron's Financial Guides, 2003; and J.G.Siegel, N.Dauber & J.K.Shim, "The Vest Pocket CPA", Wiley, 2005.
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that gives the owner of the receivable the legal right to collect money from the debtor whose financial liability directly corresponds to the receivable asset. The seller
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companies to ensure they have the immediate cash flow necessary to meet their current and immediate obligations. Invoice factoring is not a relevant financing option for
1433:
or supply-chain finance, the buyer sells its debt to the factor. That way, the buyer secures the financing of the invoice, and the supplier gets a better interest rate.
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External fraud by clients: fake invoicing, misdirected payments, pre-invoicing, not assigned credit notes, etc. A fraud insurance policy and subjecting the client to
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organizations are knowledgeable about the use of factoring by small firms and clearly distinguish between its use by small rapidly growing firms and turnarounds.
903:
875:
951:
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The emergence of these modern forms has not been without controversy. Critics accurately point out that none of these new players have experienced a complete
1078:" that an account will not collect due solely to the financial inability of account debtor to pay. In the United States, if the factor does not assume the
454:
1987:
1239:, and knowledge of the financial strength of their customers, the needs for factoring services were reshaped and the industry became more specialized.
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against accounts receivable. The
Commercial Finance Association is the leading trade association of the asset-based lending and factoring industries.
616:. This process is sometimes used in manufacturing industries when the immediate need for raw material outstrips their available cash and ability to
1242:
By the twentieth century in the United States factoring was still the predominant form of financing working capital for the then-high-growth-rate
1850:
bears the credit loss and incurs bad debt if a purchased account does not collect due solely to financial inability of the account debtor to pay.
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facsimile as being legally binding has eliminated the need for physical delivery of "originals", thereby reducing time delays for entrepreneurs.
2179:
2152:
176:
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O. Ray
Whittington, CPA, PhD, "Financial Accounting and Reporting", Wiley CPAexcel EXAM REVIEW STUDY GUIDE, John Wiley & Sons Inc., 2014
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1970:
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originally held that unless the debtor was notified, the assignment between the seller of invoices and the factor was not valid. The
1284:, had a difficult time attracting investors in early 2016, even though net returns seem higher on invoice finance platforms such as
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ledger" factoring, which entails factoring all of a company's invoices or all of the company's invoices from a particular debtor.
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requirements. For this reasons medical receivables factoring companies have developed to specifically target this niche.
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the difference between the face value, advance amount and fees back to the business in the form of a factoring rebate.
785:
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of losing a return on the cash that it could otherwise invest, against the costs associated with the use of factoring.
655:) must bear the loss if the account debtor does not pay the invoice amount. If the factoring transfers the receivable "
1898:
Bankers and Pashas: International
Finance and Economic Imperialism in Egypt; Landes, David S.; Harper Torchbooks 1969
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768:(cash balances or a factor) to cover its obligations during this time. As indicated, the business must balance the
440:
302:
78:
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companies because they generally do not have business or commercial clients, a necessary condition for factoring.
1605:
1405:
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prior to 1400, and it came to
America with the Pilgrims, around 1620. It appears to be closely related to early
1995:
724:. Sometimes the factor's charges paid by the seller (the factor's "client") covers a discount fee, additional
98:
1648:
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these services insure entrepreneurs and owners against a major source of a liquidity crises and their equity.
552:
of receivables, whereas invoice discounting ("assignment of accounts receivable" in
American accounting) is a
1633:
J. Downes, J.E. Goodman, "Dictionary of Finance & Investment Terms", Baron's Financial Guides, 2003; and
659:", the factor has the right to collect the unpaid invoice amount from the transferor (seller). However, any
418:
277:
124:
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There are four principal parts to the factoring transaction, all of which are recorded separately by an
600:. The receivable, usually associated with an invoice for work performed or goods sold, is essentially a
471:
352:
217:
166:
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88:
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The return on its investment can be estimated by looking at its Net Income Relative to its Total Assets
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Legal, compliance and tax risks: large number of applicable laws and regulations in different countries
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1207:. These also drove and were driven by modifications of the common law framework in England and the
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1567:, 2003. Taken from a combination of the definitions of a financial asset and accounts receivable
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498:. A business will sometimes factor its receivable assets to meet its present and immediate
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However, most businesses can apply invoice factoring successfully to their funding model.
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on the purchased accounts, in most cases a court will recharacterize the transaction as a
398:
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222:
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1. Distribution 2. Retail 3. Manufacturing 4. Transportation 5. Services 6. Construction
882:
1414:
ICT risks: complicated, integrated factoring system, extensive data exchange with client
857:
1951:; Baumol, William J., Litan, Robert E., and Schramm, Carl J. Yale University Press 2007
1889:
MIT Press 1939; D. Tatge, D. Flaxman & J. Tatge, American Factoring Law (BNA, 2009)
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of the factors. With the development of larger firms who built their own sales forces,
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914:
491:
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202:
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83:
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Governments were latecomers to the facilitation of trade financed by factors. English
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inform debtors that a factoring company is managing all of the business's receivables,
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to the third party, the specialized financial organization (aka the factor) to obtain
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performed, however, it is a matter of indifference who is paid. For example,
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709:
673:
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660:
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J.G. Siegel, N. Dauber & J.K. Shim, "The Vest Pocket CPA", Wiley, 2005.
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J.G. Siegel, N. Dauber & J.K. Shim, "The Vest Pocket CPA", Wiley, 2005.
1949:
Good Capitalism Bad Capitalism and The Economics of Growth and Prosperity
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68:
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2071:"Small-business lender FundThrough secures $ 24.6-million in financing"
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stake a claim on the financial rights for the receivables factored, and
617:
597:
487:
134:
1613:
2019:"Fintech Factoring: The World's Oldest Method of Finance Goes Online"
1054:), in which the factor assumes ownership of the asset and all of the
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589:
511:
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J. Downes, J.E. Goodman, "Dictionary of Finance Investment Terms",
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and non-face-to-face communications technologies starting with the
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to the lender, and the lender recognizes the borrower's promise to
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The length of time cash flow can remain at a below average level.
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that requires him or her to make a payment to the owner of the
1862:"Accounting Treatment for Factoring with and without recourse"
2171:
Non-Bank Financial Institutions and Capital Markets in Turkey
1988:"Is "Alternative Lending" Suffering from an Identity Crisis?"
1579:
The Wall Street Journal, "How to Use Factoring for Cash Flow"
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that the seller expects will remain unpaid and uncollectable,
683:
who is responsible for recording the factoring transaction:
668:(the "factor's holdback receivable") in order to cover the
1965:. United States: Dash Point Publishing. pp. 28, 36.
1811:"Factoring Costs: The 10 Most Misunderstood Cost Drivers"
1288:
and FundThrough than on business loan platforms such as
1699:"Scottish Law Commission :: Moveable transactions"
1128:
but not all factoring companies hold reserve accounts.
1885:"Four Centuries of Factoring"; Hillyer, William Hurd;
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from the survival-threatening destructive impact of a
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the "bad debt expense" associated with portion of the
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Factoring as a fact of business life was underway in
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update the payment address – usually a bank lock box.
939:
917:
885:
860:
788:
2168:
Lalit Raina; Marie-Renée Bakker; World Bank (2003).
1575:
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775:The cash balance a business holds is essentially a
708:the "factor's holdback receivable" amount to cover
672:associated with the factored receivables until the
1758:EU Federation for Factoring and Commercial Finance
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923:
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27:Financial transaction and a type of debtor finance
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841:{\displaystyle CB={\sqrt {\frac {i*nCF}{(2*r)}}}}
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1401:Operational risks, such as contractual disputes
720:" the seller must attribute to the sale of the
580:There are three parties directly involved: the
2120:. Dash Point Publishing. pp. 55, 56, 62.
2147:. Global Professional Publishi. pp. 1–.
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1411:IRS liens associated with payroll taxes, etc.
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8:
1732:Citation – Manufacturers' uses of Factoring?
588:, the one who sells the receivable, and the
2141:Alastair Graham; Brian Coyle (2000-03-01).
1606:"About Us – Commercial Finance Association"
953:is the rate of return on the firm's assets.
540:in American accounting – as propagated by
455:
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29:
2174:. World Bank Publications. pp. 79–.
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2045:"Statistics & Portfolio Performance"
1160:Generally Accepted Accounting Principles
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1742:
1740:
1738:
931:is the that cover the factoring costs
694:paid to the factor for the advance of
2144:Framework for: credit risk Management
1074:. A non-recourse factor assumes the "
1006:should not be confused with making a
177:Valuation using discounted cash flows
7:
1963:How to Run a Small Factoring Company
1062:relinquishes any title to the asset
760:The extent cash flow can change, and
674:privilege to return the merchandise
506:is a factoring arrangement used in
1818:Federal National Commercial Credit
1779:The Quarterly Journal of Economics
1532:Staff, Investopedia (2003-11-19).
25:
1939:Silbert HBR January/February 1952
1591:Please refer to the Wiki article
538:assignment of accounts receivable
1595:for further discussion on cites.
1132:Long-term contracts and minimums
651:", the factor (purchaser of the
40:
1166:, with the receivables used as
999:Accounts receivable discounting
530:, Factoring is not the same as
1887:Quarterly Journal of Economics
1646:"The World Factoring Yearbook"
1105:Discount rate or factoring fee
831:
819:
104:Strategic financial management
59:Asset and liability management
1:
2017:Bonner, Nadine (April 2016).
777:demand for transactions money
687:the "fee" paid to the factor,
556:that involves the use of the
490:) to a third party (called a
1408:) securing rights to assets.
1058:associated with it, and the
2116:Callender, Jeffrey (2010).
1986:Graziano, Same (May 2016).
1781:, (November 1952), 545–556.
1380:Risks to a factor include:
1220:Canadian Federal Government
909:cash flow in a given period
508:international trade finance
2244:
2223:Working capital management
1422:
1050:of a financial asset (the
1044:Factoring without recourse
1026:, and credit history, the
712:, and (e) any additional "
558:accounts receivable assets
79:Enterprise risk management
1582:; small-business/funding.
1404:Uniform Commercial Code (
2118:Fundamentals for factors
1961:Callender, Jeff (2012).
1565:Baron's Financial Guides
1358:Invoice payers (debtors)
1231:in 1696 to mitigate the
99:Mergers and acquisitions
2091:"Investment Statistics"
1919:Harvard Business Review
1917:Silverman, Herbert R.;
514:who wish to sell their
419:Stress test (financial)
2218:Accounting terminology
1395:could limit the risks.
1100:Common factoring terms
1018:to a company based on
1004:Non-recourse factoring
947:
925:
899:
871:
842:
278:Investment performance
125:Balance sheet analysis
1998:on September 13, 2016
1726:requirements to meet
1296:Specialized factoring
1237:distribution channels
948:
926:
900:
872:
843:
618:purchase "on account"
608:the receivables at a
472:financial transaction
353:Too connected to fail
218:Cash conversion cycle
167:Management accounting
89:Investment management
2213:Fundamental analysis
2025:. Xander Media Group
1150:Treatment under GAAP
937:
915:
883:
858:
786:
548:). Factoring is the
536:(which is called an
478:in which a business
429:Supply chain finance
363:Volatility (finance)
248:Exchange traded fund
238:Economic value added
208:Capital appreciation
162:Fundamental analysis
50:Financial management
2228:Accounts receivable
1777:William J. Baumol,
1728:current liabilities
1448:Invoice discounting
1072:accounts receivable
898:{\displaystyle nCF}
877:is the cash balance
710:merchandise returns
670:merchandise returns
661:merchandise returns
622:invoice discounting
594:financial liability
533:invoice discounting
521:asset based lending
484:accounts receivable
414:Statistical finance
384:Factoring (finance)
333:Sustainable finance
1992:The Secured Lender
1860:Memos, Financial.
1651:2013-08-11 at the
1199:, followed by the
1014:decides to extend
943:
921:
895:
870:{\displaystyle CB}
867:
838:
584:who purchases the
570:Scottish Ministers
424:Structured product
253:Financial analysis
172:Structured finance
94:Managerial finance
2208:Corporate finance
2181:978-0-8213-5527-5
2154:978-1-888998-73-3
1827:on 11 August 2016
1703:ScotLawCom.gov.uk
1610:community.cfa.com
1443:Capital formation
1431:reverse factoring
1425:Reverse factoring
1419:Reverse factoring
1314:Medical factoring
1229:Act of Parliament
1030:must recognize a
958:advancing funds.
946:{\displaystyle r}
924:{\displaystyle i}
836:
835:
465:
464:
409:Position of trust
389:Financial analyst
313:Return on capital
213:Capital structure
109:Wealth management
34:Corporate finance
16:(Redirected from
2235:
2193:
2192:
2190:
2188:
2165:
2159:
2158:
2138:
2132:
2131:
2113:
2107:
2106:
2104:
2102:
2087:
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2078:
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2067:
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2060:
2058:
2056:
2041:
2035:
2034:
2032:
2030:
2014:
2008:
2007:
2005:
2003:
1994:. Archived from
1983:
1977:
1976:
1958:
1952:
1946:
1940:
1937:
1931:
1928:
1922:
1921:, September 1949
1915:
1909:
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1877:
1876:
1874:
1872:
1857:
1851:
1843:
1837:
1836:
1834:
1832:
1826:
1820:. Archived from
1815:
1809:Sillay, Joseph.
1806:
1800:
1797:
1791:
1788:
1782:
1775:
1769:
1766:
1760:
1755:
1749:
1746:
1733:
1722:synonymous with
1720:
1714:
1713:
1711:
1709:
1695:
1689:
1688:
1686:
1684:
1679:on 14 March 2017
1675:. Archived from
1665:
1656:
1644:BCR Publishing,
1642:
1636:
1631:
1625:
1624:
1622:
1621:
1612:. Archived from
1602:
1596:
1589:
1583:
1577:
1568:
1561:
1548:
1547:
1545:
1544:
1529:
1523:
1520:
1495:
1492:
1369:General Electric
1334:mechanics' liens
1244:textile industry
1188:merchant banking
1146:a cost premium.
952:
950:
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928:
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868:
847:
845:
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834:
817:
800:
799:
770:opportunity cost
692:Interest Expense
649:without recourse
457:
450:
443:
404:Investor profile
303:Over-the-counter
283:Investor profile
268:Growth investing
263:Financial system
243:Equity (finance)
130:Enterprise value
74:Corporate action
44:
30:
21:
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2097:. December 2016
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2051:. December 2016
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1866:Financial Memos
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602:financial asset
578:
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394:Financial asset
348:Too big to fail
338:Systematic risk
233:Economic bubble
223:Cost of capital
28:
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18:Bill discounter
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1972:978-1938837029
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1799:Farag, I. 2013
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1156:United States
1149:
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1111:
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1077:
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671:
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658:
657:with recourse
654:
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635:
634:retail or B2C
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368:Watered stock
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343:Systemic risk
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54:
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47:
43:
39:
38:
35:
31:
19:
2185:. Retrieved
2170:
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2143:
2136:
2117:
2111:
2099:. Retrieved
2094:
2085:
2074:. Retrieved
2065:
2053:. Retrieved
2048:
2039:
2027:. Retrieved
2022:
2012:
2000:. Retrieved
1996:the original
1991:
1981:
1962:
1956:
1948:
1944:
1935:
1926:
1918:
1913:
1903:
1894:
1886:
1881:
1869:. Retrieved
1865:
1855:
1841:
1829:. Retrieved
1822:the original
1817:
1804:
1795:
1786:
1778:
1773:
1764:
1753:
1718:
1706:. Retrieved
1702:
1693:
1681:. Retrieved
1677:the original
1672:
1669:"ABFA: FAQs"
1640:
1629:
1618:. Retrieved
1614:the original
1609:
1600:
1587:
1564:
1541:. Retrieved
1538:Investopedia
1537:
1527:
1428:
1379:
1365:
1361:
1352:
1343:
1330:
1327:Construction
1317:
1308:
1299:
1282:Lending Club
1277:credit cycle
1274:
1270:
1266:
1257:
1254:Modern forms
1248:
1241:
1225:
1213:
1181:
1172:
1164:secured loan
1158:, under the
1153:
1144:
1135:
1126:
1117:
1114:Advance rate
1108:
1095:
1092:
1088:
1084:secured loan
1063:
1059:
1047:
1043:
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1002:
993:
978:
960:
956:
906:
850:
774:
766:
754:
750:
741:
737:
729:non-payment.
717:
713:
678:
665:
656:
648:
640:
638:
628:are used by
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605:
581:
579:
553:
549:
537:
531:
525:
479:
467:
466:
383:
308:Pension fund
293:Market trend
273:Growth stock
2101:December 5,
2055:December 5,
1871:23 November
1848:credit risk
1673:ABFA.org.uk
1386:credit risk
1349:Recruitment
1305:Real estate
1080:credit risk
1076:credit risk
963:credit risk
726:credit risk
722:receivables
703:receivables
516:receivables
358:Toxic asset
328:Super angel
323:Speculation
288:Market risk
155:engineering
2202:Categories
2076:2018-04-27
2023:abfjournal
1620:2016-06-17
1593:forfaiting
1543:2018-05-18
1454:References
1216:common law
1193:air travel
1168:collateral
1052:receivable
1024:cash flows
1010:. When a
968:bankruptcy
681:accountant
653:receivable
592:who has a
586:receivable
562:collateral
504:Forfaiting
185:Investment
140:accounting
117:Accounting
1724:cash flow
1205:computers
1203:and then
1201:telephone
1197:telegraph
1032:liability
826:∗
806:∗
734:Rationale
676:expires.
626:factoring
572:in 2018.
554:borrowing
512:exporters
468:Factoring
135:Financial
2187:13 March
2029:June 27,
2002:June 27,
1649:Archived
1534:"Factor"
1437:See also
1261:Internet
1028:borrower
907:negative
745:discount
610:discount
576:Overview
564:for the
496:discount
488:invoices
145:analysis
69:Clawback
1930:Hillyer
1831:20 June
1683:9 April
1340:Haulage
1184:England
1178:History
1154:In the
975:Process
620:. Both
598:invoice
544:within
526:In the
502:needs.
494:) at a
486:(i.e.,
150:analyst
2178:
2151:
2124:
1969:
1708:18 May
1060:seller
1020:assets
1016:credit
1012:lender
851:where
716:" or "
590:debtor
582:factor
492:factor
318:Shares
298:Option
1908:2009)
1825:(PDF)
1814:(PDF)
1406:UCC-1
1393:audit
1376:Risks
1321:HIPAA
1056:risks
1046:is a
1036:repay
696:money
645:asset
606:sells
480:sells
470:is a
399:Hedge
198:Asset
2189:2013
2176:ISBN
2149:ISBN
2122:ISBN
2103:2016
2057:2016
2031:2016
2004:2016
1967:ISBN
1873:2013
1833:2016
1710:2022
1685:2017
1064:sold
1048:sale
1040:loan
1038:the
1008:loan
718:gain
714:loss
690:the
666:sold
641:sale
639:The
624:and
614:cash
566:loan
550:sale
546:GAAP
542:FASB
500:cash
482:its
1429:In
630:B2B
560:as
510:by
2204::
2093:.
2047:.
2021:.
1990:.
1864:.
1816:.
1737:^
1730:.
1701:.
1671:.
1660:^
1608:.
1572:^
1552:^
1536:.
1499:^
1461:^
1292:.
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1170:.
1086:.
1022:,
2191:.
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2130:.
2105:.
2079:.
2059:.
2033:.
2006:.
1975:.
1875:.
1835:.
1712:.
1687:.
1623:.
1546:.
941:r
919:i
893:F
890:C
887:n
865:B
862:C
832:)
829:r
823:2
820:(
815:F
812:C
809:n
803:i
796:=
793:B
790:C
698:,
456:e
449:t
442:v
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