Factoring can be a valuable financing tool for smaller, growing businesses. In the Invoice Factoring Essentials course, we discuss when this tool should be used, how to select a factor, the terms and conditions that it imposes, the factoring process, and the differences between recourse and non-recourse factoring. We also look at factoring from the viewpoint of the factor, noting how it makes money, controls its risk, and deals with potential fraud situations.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Identify the types of businesses that can profit from the use of factoring.
Specify the issues impacting the profits earned by a factor.
Identify the selection criteria for picking a factor.
Specify the fees that factors charge to their clients.
Identify why factors use reserve accounts.
Recall how a factor can protect its interests in the event of a client bankruptcy.
Recall the differences between recourse and non-recourse financing.
Major Topics
When to Use Factoring
How much Does a Factor Make?
Selecting a Factor
Factor Application and Setup Fees
UCC-1 Financing Statements
The Factoring Process
Reasons to Change Factors
Advantages of Factoring
Disadvantaging of Factoring
