Commercial factoring definition
Commercial factoring is a form of financing by which a company sells its accounts receivable before the receivables are due in exchange for cash. The purchaser of the company's receivables is called a "commercial factor" or "factor." After the factor purchases the accounts receivable, the right to collect on the receivables transfers from the company to the factor. Additionally, a commercial factor may lend money, secured by a company's inventory as collateral. accounting controls sufficient to provide reasonable assurance that the company's transactions were recorded as necessary to permit preparation of financial statements in conformity with Generally Accepted Accounting Principles ("GAAP"); and (c) file with the SEC quarterly reports (on Form 10-Q) and annual reports (on Form 10-K) which included financial statements that accurately presented ▇▇▇▇▇▇▇▇'▇ financial condition and the results of its business operations in accordance with GAAP.
VI. The Securities Fraud Scheme
▇. ▇▇▇▇▇▇▇▇'▇ Misrepresentations Concerning Its Credit Policy And Practices
Examples of Commercial factoring in a sentence
Commercial factoring service refers to a set of financial solutions provided under a factoring agreement between a factor and a supplier, where services of which typically include financing, credit risk management, receivables management and collection services.