About this document
Banker’s Acceptance Explained by Isaiah Cruz is a document available to read on EtoBox.
Accounts receivable provides a spontaneous source of financing for a firm. A firm can factor its accounts receivable, where a factor purchases the receivables at a discount and charges interest and fees on the amount advanced. For a company factoring $100,000 of monthly receivables with a 30 day collection period, an 80% advance, 10% interest charge, and 2% fee, the annual cost of financing is 17.5%.
- Author
- Isaiah Cruz
- Language
- EN