MYTUTOR SUBJECT ANSWERS

113 views

What is Factoring?

This is a short term method of finance where credit notes are sold to factor houses for discounted prices. it allows a business to get their money instantly adn so improves cash flow. However factor houses take a percentage of the credit note. For example, if a business was waiting for a payment of £1000. They could take it to a factor house and get £900 for the same payment. This means that the company keeps 90% of the money, and gets the money instantly. 

Robyn C. A Level Business Studies tutor, GCSE Design & Technology tut...

3 months ago

Answered by Robyn, an A Level Business Studies tutor with MyTutor


Still stuck? Get one-to-one help from a personally interviewed subject specialist

7 SUBJECT SPECIALISTS

£20 /hr

Yasmin A.

Degree: Business Economics (Bachelors) - Exeter University

Subjects offered: Business Studies, Economics

Business Studies
Economics

“Top tutor from the renowned Russell university group, ready to help you improve your grades.”

£20 /hr

Emily P.

Degree: International Business with Spanish (Bachelors) - Newcastle University

Subjects offered: Business Studies

Business Studies

“About Me I am a student at Newcastle University studying International Business with Spanish. I am currently on my year abroad, studying in Barcelona for the first term and then undergoing a marketing placement in Seville. I have alw...”

MyTutor guarantee

£20 /hr

Megan J.

Degree: BSc Business (Bachelors) - Lancaster University

Subjects offered: Business Studies, Extended Project Qualification+ 1 more

Business Studies
Extended Project Qualification
-Personal Statements-

“Who am I? I am a BSc Business student at Lancaster University, where it is within the top 10 and the management school is triple accredited. I have always been interested in the way the world ticks from policies and thier impacts to ...”

About the author

£22 /hr

Robyn C.

Degree: Business Management (Bachelors) - Cardiff University

Subjects offered: Business Studies, -Personal Statements-

Business Studies
-Personal Statements-

“Hi, my name is Robyn and I am a Business Management student at Cardiff University.  I am very patient and friendly and really enjoy teaching. I have been teaching Taekwondo since I was 15, so have a lot of experience teaching, with pe...”

You may also like...

Posts by Robyn

What is break even?

What is cash flow?

What is Factoring?

What is product diversification?

Other A Level Business Studies questions

What are Porter's 5 forces and how they help the business?

Evaluate the use of marketing plans for businesses:

Evaluate the various methods of financing business

What are the benefits of innovation within a business?

View A Level Business Studies tutors

Cookies:

We use cookies to improve our service. By continuing to use this website, we'll assume that you're OK with this. Dismiss

mtw:mercury1:status:ok