Question

A Factoring company reviews a company’s accounts examining customer payment histories and credit scores.

a. True                  b. False

Answer 1

yes its true

because Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable to a third part at a discount. A business will sometimes factor its receivable assets to meet its present and immediate cash needs. so for the company providing the service of the factoring what is most important thing??

the most important thing is customer does not make a default as they are not thier customers they don't know much about them or about thier credit worthiness so they have to examine the payment history of the customers before entering in to factoring.