Multiple choice

In international factoring, the number of factors that are involved in the factoring process is

  1. one

  2. two

  3. three

  4. Depends upon the transaction
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In international factoring, there are usually two factors. The export factor looks at financing the exporter and sales administration (presenting invoices at the right time, collecting payments being the key tasks). The import factor is interested in evaluating the buyer, collecting the money on time at the same time ensuring that he is protected against default.

Keep practicing — related questions