Hello Tutor,For past year paper mar/june 2017 Q31 part (b)
The foreign account receivable part
The examiner answer included "advances against collections" this ,
Can I know what is the meaning and how it is worked?Thank you
Ask the Tutor ACCA FM
mar/june 2017
7y ago#1All it means is getting some of the money owed early. This could with be done by getting the customer to pay some of the money when they place the order, and then pay the rest when they get the goods, or by using a factor. Factors will usually offer the service of paying over some of the money early (as explained in my lecture of factoring).
Sign in to reply to this topic.