Factoring

Many small businesses get the cash they need to operate and expand from so-called factors. One of the biggest factors in the business is CIT, and with CIT on the ropes, small businesses are worried. Senior Editor Paddy Hirsch explains what factoring is, and how it works.

Category:

Education

Tags:

• marketplace
• whiteboard
• factoring
• business
• financialcrisis
• paddyhirsch

[ewap8]

Excellent explanations as usual. Good job!

[VladimirCA]

Easy explanation! Thanks.

[shek32]

Who else came here for math -_-

[darkaurora11]

i still dont understand how factoring is a means of obtaining a greater cash flow

[TheLadykiller47]

Nice! a Penis, so this is Science?????

[ThatGuyInTheBasement]

Sam's mother was a giraffe.

[Dervalgue]

Excellent, thanks, D. (Canada)

[princejag]

you're a god's given gift in teaching,hats off to you..........

[1willbsb]

Exclente explicação. Muito bom mesmo!

[realdirt100]

This video is not quite accurate since Small Business (SB) still assumes the risk. Here is how it works. SB assigns invoice to factor. Factor advances a % of invoice to SB, usually 70 to 80%. Amount with-held is called reserve. If Nordstroms fails to pay the invoice on time (usually 90 days) factor will close out the invoice by applying SB's reserve funds towards the unpaid invoice. If the invoice is paid on time factor returns the reserve balance to sb less factoring fees, usually 4%-6%.

[lesanne2]

Excellent , thank you.

[briansomethin]

Man... This guy is phenomanel with explaing in terms that anyone can understand.

Your videos are awsome and again, I appreciate what your doing for the common folks like myself!