Question

in factoring _ finance is not available​

Answer 1

In Maturity Factoring, finance is not available.

Explanation:

• Factoring is a process which occurs when a company buys an invoice or debt from another company.
• Factoring is also known as debtor financing or receivables factoring.

• Maturity factoring is a type of factoring in which the client sells his invoice to other company.
• In return, the company pays the client for that invoices either on the date of maturity period or any date after the date of maturity period.
• In this type of factoring, the company does not pay any advance money to the client.
• As the company does not pay any money in advance to the client, finance facility is not available.
• The company pays the client at the end of maturity period.
• This factoring is also known as collection factoring.