Factoring is a short-term credit, liquidity solutions to businesses with funds caught up in accounts receivable. The products have more working capital. The seller will transfer trade receivables pending charge to the business of factoring. And will receive approximately 70 percent - 90 of the commercial product, according to the documents. The factoring business will be operated by the collection of trade receivables when due. When factoring business of collecting debts from trade receivables up. Fees and interest will be paid the remaining amount to the seller.
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