Business Studies, asked by morngrashi7897, 11 months ago

Distinguish between factoring and forfaiting

Answers

Answered by naincyzoya2407
1

Explanation:

FACTORING

1) involves account receivables of short maturities.

2) it finance upto 80-90%.

3) it is not a secondary market.

4) it is a type of recourse or non recourse.

FORFAITING

1) involves account receivables of medium to long term maturities.

2) it finance upto 100%.

3) it is a secondary market.

4) it is a type of non recourse.

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