Which of the following is are the parties in Factoring Business?
Which of the following is are the parties in Factoring Business?
[A]buyer
[B]seller
[C]buyer and seller
[D]buyer, seller and financial institution
buyer, seller and financial institution
Factoring refers to the process of managing the sales register of a client by a financial services company. Basically, there are three parties involved in a factoring transaction:
1. The buyer of the goods
2. The seller of the goods
3. The factor, i.e. The financial institution.