NATURE OF FACTORING

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A US DEFINITION: • “a continuing arrangement between a factoring concern and the seller of goods or services on open account, pursuant to which the factor performs the following services with respect to the accounts receivable…” 1. Purchases all accounts receivable for immediate cash [Transfer of ownership; right to receive payment under law] Finance 2. Maintains the ledgers and performs other bookkeeping duties Admin 3. Collects the accounts receivable 4. Assumes losses which may arise from the customer's non-payment Admin Bad debt protection 2009
UNIDROIT CONVENTION ON INTERNATIONAL <strong>FACTORING</strong> International Institute for the Unification of Private Law (Rome) • DEFINITION: ANY 2 OUT <strong>OF</strong> THE FOLLOWING 4: 1. finance for the supplier, including loans and advance payments 2. maintenance of accounts (ledgering) relating to the receivables 3. collection of receivables 4. protection against default in payment by debtors 2009
Page 1: NATURE OF FACTORING www.factors-cha
Page 5 and 6: UK PRACTICE: MUCH BROADER • COMBI
Page 7 and 8: UK FACTORING AGREEMENT RECOURSE OPT
Page 9 and 10: RECOURSE FACTORING v INVOICE DISCOU
Page 11 and 12: OPTION NO DISCOUNTING DISCOUNTING
Page 13 and 14: OPTION NO DISCLOSURE DISCLOSURE •
Page 15 and 16: BENEFITS TO THE TOURISM SECTOR •
Page 17 and 18: USE & MISUSE OF FACTORING USES •
Page 19 and 20: 2009
Page 21 and 22: BENEFITS OF FACTORING HAVE LED TO G
Page 23 and 24: 700,000 DOMESTIC FACTORING 600,000
Page 25 and 26: www.agricap.com • Peruvian Packag
Page 27: FARMER FINANCING IN THE CARIBBEAN

NATURE OF FACTORING

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