factoring (1 Viewer)

[preciouspearl89]

Hi guys!

I am seriously confused about what factoring of accounts receivables is and I'm trying to answer a question on how factoring can help a business's working capital.

Can someone help? I tries readin gthe textbook , but I dont understand it properly, cause we haven't done it at school yet. I'm just trying to get ahead with my work.

Any help would be much appreciated.
Thanks.

 

[preciouspearl89]

Thanks a LOT for your help, but what I dont understand is how can you sell accounts receivables since you havent received the money yet? And why would a third party want to buy it?

 

[Jerruy]

preciouspearl89, just give up now