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8. Define factoring of accounts receivables.

9. How does factoring effect cash management?

10.Explain the difference between factoring and accounts receivable financing.

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The response addresses the queries posted in 322 words with references.

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The response addresses the queries posted in 322 words with references.

//Before writing about the impact of factoring on cash management, it is essential to know about the factoring of account receivables. One should know about the main concept of factoring and its fucnt6iosn in regard the account receivables, which further will assist in analyzing the impact of factoring in an effective manner.//


Factoring of accounts receivables is unique financial innovation. It is defined as business involving continuing legal relationship between financial institution and the business concern, whereby the factor purchases the client's accounts receivables and in relation control the credit, extended to customers and administers the sales ledger. In simple terms, it is method of converting accounts receivables into the cash before the due date by selling receivables to a company that specializes in their collection and ...

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  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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