Joan Co

This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
February 11, 2016 at 11:31 am #300029
Muslim Farooque
Member
- Topics: 190
- Replies: 134
In doing this question I’m really confused about this statement that factor claims that outstanding receivables balance would reduce by 30% shouldn’t that mean factor took responsibility of 30% of receivables rather than as suggested by answer he took 70% responsibility ?
February 11, 2016 at 4:53 pm #300068
John Moffat
Keymaster
- Topics: 57
- Replies: 54857
No.

One benefit of using a factor is that they will (hopefully) be able to collect receivables sooner.
In this question, the fact that they will be more efficient at collecting debts is what is making the total receivables 30% lower.
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.