Receivables, payables and inventory - part 2
Taught by James Griffiths · AI tutor support included
Factoring receivables is a powerful working capital management tool that can accelerate cash inflow and reduce administrative overhead. This lesson explores the mechanics of factoring agreements, compares recourse and non-recourse options, and analyses their financial impact through a practical case study, enabling you to evaluate whether factoring is the right solution for your organisation's cash flow needs.
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In this lesson
- 0:00 Introduction to Factoring
- 0:39 Recourse vs. No Recourse Factoring
- 1:32 Pros and Cons of Factoring
- 2:35 Marigold's Financial Dilemma
- 3:50 Calculating Factoring Costs
- 6:23 Conclusion and Next Steps
About this lesson
Unlock the potential of factoring to improve your company's cash flow and reduce administrative burdens. This video delves into the mechanics of factoring receivables, distinguishing between recourse and non-recourse agreements, and evaluating their costs versus benefits. Through a detailed case study of Marigold's financial decision-making process, viewers will learn how to assess the financial impact of factoring agreements on liquidity and overall expenses. Enhance your financial management skills by understanding when and how to utilise factoring to your company's advantage.
Duration: 7m
- Factoring receivables
- Recourse vs. non-recourse factoring
- Factoring costs and fees
- Cash flow acceleration
- Working capital optimisation
- Financial impact assessment
Transcript
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