Get premium membership and access questions with answers, video lessons as well as revision papers.

Highlight the similarities between invoice discounting and factoring.

      

Highlight the similarities between invoice discounting and factoring.

  

Answers


sharon
1.Both are raised on the account of the company’s debtors or invoices.
2.both are expensive sources of finance to the company because discount rates in both case will be higher than the bank rate on borrowed funds
3.both fall in the family ( group) of short term sources of finance to the company, thus are aimed at solving the company’s liquidity problems
sharon kalunda answered the question on April 16, 2019 at 14:17


Next: What are the disadvantages of using Invoice discounting as a source of finance?
Previous: Give the differences between invoice discounting and factoring.

View More Entrepreneurship Questions and Answers | Return to Questions Index


Learn High School English on YouTube

Related Questions