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    Adobe Scan 06 Jul 2022

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    teajaaswin853

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    Adobe Scan 06 Jul 2022

    Uploaded by

    teajaaswin853
    3 views1 page

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    3 views1 page

    Adobe Scan 06 Jul 2022

    Uploaded by

    teajaaswin853

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    © All Rights Reserved
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    of 1

    nancial Markets and

    Servlces
    Credit Investigation and
    Undertaking of Credit Risk
    The factor has tomonitor the financial
    carefully, since, he assumes the risk position of the customer
    of default in
    due to their financial payment by customer
    of the most inability to pay. This assumption of credit risk is
    the
    important functions which the factor on@
    accepting risk, he must be aware of the
    accepts. Hence, before
    customer, his past financial fully financial viability of
    and performance record, his future th
    honesty integrity in the business
    world etc. For
    ability, hig
    also undertakes credit this purpose, the
    investigation work. facto
    PTovision of Finance
    After the finalisation of the
    the factor agreement and sale of goods by the
    provides 80% of the credit sales as to the
    client
    Hence, the client can go ahead with prepayment
    his business client
    plans or
    schedule without any
    interruption. This is
    production
    any recourse to the client. That is, in payment generally made withou
    the event of
    has to bear the loss of non-payment, the facto
    payment.
    Rendering Consultapcy Services
    to
    Apart from the above, the factor also provides
    the client. He informs the management
    client about the additional services
    opportunities available, the changing business and financial busines
    customers, the likelihood of coming recession etc. profiles of the
    TYPES OF FACTORING
    The type of
    factoring services varies on the basis of the nature of
    transactions between the client and the factor, the
    nature and volume
    cliene's business, the nature of factor's security etc. In of
    services can be classified as follows: general, the factoring
    i) Full service factoring or without recourse
    factoring
    (ii) With Recourse Factoring
    (iii) Maturity Factoring
    (iv) Bulk Factoring
    (v) Invoice Factoring
    (vi) Agency Factoring
    (vii) International Factoring
    (i) Full service Factoring
    Under this type, a factor
    provides all kinds of services discussed above-
    Thus, a factor provides finance, administers the
    sales ledger, collects the
    debts at his risk and renders
    consultancy service. This of
    type is
    factoring

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