Question

State and explain two similarities and two differences between pledging and factoring accounts receivables.

State and explain two similarities and two differences between pledging and factoring accounts receivables.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Pledging Factoring
Meaning Pledging is an agreement where accounts receivable are used as collateral for the loan Factoring of Receivables is the sale of receivables to a third party
Difference Responsibility of paying back the amount still lies with the person who was issued the loan Responsibility of paying back the amount does not lie with the person who has used factoring
Difference Interest is charged on the loan The asset is sold at a discount. The difference is the commission.
Similarity Both are sources of funding
Similarity The customer (receivable) is still liable to pay and it does not take away his duty to pay
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Factoring accounts receivable is the sale of a firm's receivables while pledging accounts receivable is the...
Factoring accounts receivable is the sale of a firm's receivables while pledging accounts receivable is the use of accounts receivable as collateral for a loan. a. True b. False
A firm does not have resources to collect on its accounts receivables and needs cash to...
A firm does not have resources to collect on its accounts receivables and needs cash to run its business. Which method of short-term financing (pledging or factoring accounts receivables) would you recommend and why?
Explain Bayesian statistics and Frequentist statistics. Define each statistical methodology, state the differences between the two,...
Explain Bayesian statistics and Frequentist statistics. Define each statistical methodology, state the differences between the two, state the similarities between the two, and then explain which approach you would prefer when faced with a statistical problem and why.
Is factoring a good option for an organization to control receivables? Please explain.
Is factoring a good option for an organization to control receivables? Please explain.
List the similarities and differences between Preferred Equity and Mezzanine Debt. Take one of those similarities/differences...
List the similarities and differences between Preferred Equity and Mezzanine Debt. Take one of those similarities/differences and explain it in detail.
List two similarities between microtubules and actin filaments, and two differences.
List two similarities between microtubules and actin filaments, and two differences.
give two similarities and two differences between the processes of spermatogenesis and oogenesis.
give two similarities and two differences between the processes of spermatogenesis and oogenesis.
Explain efficient market hypothesis similarities and differences between CAPM and APT
Explain efficient market hypothesis similarities and differences between CAPM and APT
Outline the similarities and differences of psychoanalytic and psychosocial theories. State at least five similarities and...
Outline the similarities and differences of psychoanalytic and psychosocial theories. State at least five similarities and differences
What are the similarities and differences between the two t tests for the difference between two...
What are the similarities and differences between the two t tests for the difference between two population means? Under what condition should we use the t test for the matched samples?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT