Mitigating Techniques for Commercial Risk/Factoring-Transference - Revision history

wikademia>Dr. Eme: moved Archive:Mitigating Techniques for Commercial Risk/Factoring-Transference to Mitigating Techniques for Commercial Risk/Factoring-Transference over redirect

2009-08-12T19:27:54Z

moved Archive:Mitigating Techniques for Commercial Risk/Factoring-Transference to Mitigating Techniques for Commercial Risk/Factoring-Transference over redirect

← Older revision	Revision as of 19:27, 12 August 2009
(No difference)

wikademia>Wikademia: moved Mitigating Techniques for Commercial Risk/Factoring-Transference to Archive:Mitigating Techniques for Commercial Risk/Factoring-Transference

2009-05-25T23:19:15Z

moved Mitigating Techniques for Commercial Risk/Factoring-Transference to Archive:Mitigating Techniques for Commercial Risk/Factoring-Transference

← Older revision	Revision as of 23:19, 25 May 2009
(No difference)

wikademia>Wikademia at 06:22, 11 April 2009

2009-04-11T06:22:02Z

← Older revision		Revision as of 06:22, 11 April 2009
Line 1:		Line 1:
	{{ntnes}}		{{ntnes}}

	~~==Factoring-Transference==~~
	Factoring can be described as the outsourcing of credit and collections. In other words, a seller pays another company, a factor, to collect payments from a buyer. The factor buys the accounts receivable--product or services that the buyer wants-- and pays the seller directly. The factor owns the receivables and goes after the buyer if the buyer does not pay the factor.		Factoring can be described as the outsourcing of credit and collections. In other words, a seller pays another company, a factor, to collect payments from a buyer. The factor buys the accounts receivable--product or services that the buyer wants-- and pays the seller directly. The factor owns the receivables and goes after the buyer if the buyer does not pay the factor.

wikademia>Wikademia: Text replace - 'TF3.5' to 'ntnes'

2009-04-10T17:26:31Z

Text replace - 'TF3.5' to 'ntnes'

← Older revision		Revision as of 17:26, 10 April 2009
Line 1:		Line 1:
	{{~~TF3.5~~}}		{{ntnes}}

	==Factoring-Transference==		==Factoring-Transference==

wikademia>Wikademia: Text replace - 'Category:International Business' to 'Category:International business'

2009-04-09T05:16:44Z

Text replace - 'Category:International Business' to 'Category:International business'

← Older revision		Revision as of 05:16, 9 April 2009
Line 15:		Line 15:


	[[Category:International ~~Business~~]]		[[Category:International business]]

wikademia>Wikademia: 2 revisions

2009-04-08T04:18:24Z

2 revisions

← Older revision	Revision as of 04:18, 8 April 2009
(No difference)

24.11.195.94 at 13:27, 28 September 2007

2007-09-28T13:27:09Z

← Older revision		Revision as of 13:27, 28 September 2007
Line 11:		Line 11:

	The problems factoring presents to most companies are that most factors don't cover the riskiest countries and the service may be cost prohibitive for companies with tight profit margins.		The problems factoring presents to most companies are that most factors don't cover the riskiest countries and the service may be cost prohibitive for companies with tight profit margins.

			<div style="float:right;">[[Mitigating Techniques for Commercial Risk/Governments-Transference\|Prev]] \| [[Mitigating Techniques for Commercial Risk/Forfaiting-Transference\|Next]]


	[[Category:International Business]]		[[Category:International Business]]

wikademia>MSUglobal: New page: {{TF3.5}} ==Factoring-Transference== Factoring can be described as the outsourcing of credit and collections. In other words, a seller pays another company, a factor, to collect payments...

2007-09-25T19:24:02Z

New page: {{TF3.5}} ==Factoring-Transference== Factoring can be described as the outsourcing of credit and collections. In other words, a seller pays another company, a factor, to collect payments...

New page

{{TF3.5}}

==Factoring-Transference==
Factoring can be described as the outsourcing of credit and collections. In other words, a seller pays another company, a factor, to collect payments from a buyer. The factor buys the accounts receivable--product or services that the buyer wants-- and pays the seller directly. The factor owns the receivables and goes after the buyer if the buyer does not pay the factor.

Its use in international trade goes back centuries. Cross-border factoring differs from domestic factoring in that the factor does not purchase the receivables unless and until they become past due.

When a factor guarantees payment and a seller needs the payment before it is due, the seller can borrow from the factor at some cost to the seller. The factor makes all credit decisions for the seller and collects all receivables from approved buyers. Unless the reason for non-payment is a dispute between the seller and buyer, the factor pays 100% of past-due receivables. Factors allow sellers to pick the customers they want to include, though not individual invoices. A rule of thumb is that factoring costs about twice as much as credit insurance.

A limitation on factoring is that it only exists in countries with laws that support the buying and selling of receivables--common in developed countries, but not emerging markets. If cost and range of risk coverage are issues, it is usually more satisfactory to use a letter of credit or export credit insurance. Most factors are "niche" players, usually concentrating in select regions of the world. There are certain industries, such as textiles and clothing, where factoring is considered a part of doing business.

The problems factoring presents to most companies are that most factors don't cover the riskiest countries and the service may be cost prohibitive for companies with tight profit margins.

[[Category:International Business]]