Describe the advantages and disadvantages of factoring receivables for your business.

Step 1

Your company is in desperate need of cash to pay its current due bills. Currently, you have a lot of accounts receivables on your books, but can not wait to be paid. Use the internet to search for variouscompanies that provide factoring services for receivables.

Step 2

Respond to the following questions and,

• What are some of the advantages ofusing a factoring company?
• What is the average fee or percentage range charged on the receivables?
• How quickly will your company be paid in cash?
• What are the disadvantages ofusing a factoring company?
• In your opinion, should your company use a factoring company to pay its bills or are there any other options?