Factoring FS
Factoring FS
Factoring FS
FINANCIAL SERVICES
PRESENTATION
INTRODUCTION
Financial service is part of financial system that provides different types
of finance through various credit instruments, financial products and
services.
In Financial instruments, we come across Cheques, bills, promissory
notes, debt instruments, letter of credit, etc.
In Financial products, we come across different types of mutual
funds. Extending various types of investment opportunities. In
addition, there are also products such as credit cards, debit cards, etc.
In Financial services we have leasing, factoring, hire purchase
finance etc., through which various types of assets can be acquired
either for ownership or on lease. There are different types of leases as
well as factoring too. Thus, financial services enable the user to
obtain any asset on credit, according to his convenience and at a
reasonable interest rate.
MEANING
Provision of finance
Administration of sales ledger
Collection of receivables
Protection against risk
Credit management
Advisory services
ADVANTAGES
A firm that enters into factoring agreement is benefited in a number of
ways. Some of the important benefits of factoring are summarized as
follows:
Improves efficiency.
Higher credit standing.
Reduces cost.
Additional source.
Advisory service.
Acceleration of production cycle.
Adequate credit period for customers.
Competitive terms to offer.
LIMITATIONS