Debt Factoring

avatar
Created by
Niamh

Cards (4)

  • Debt Factoring
    • Involves the firm selling its debt for less than face value.
  • Advantage:
    The factor chases up the unpaid debt, saving the company time and money.
  • Disadvantages:
    Factors tend to be interested in only large outstanding debts as they can earn more profit.
  • Disadvantages:
    The business does not receive the full amount of the outstanding debt.