TITLE : FACTORING AND FINANCE.*

 
Editor's Foreword  v
Preface  vii
 
 
1 FACTORING: AN INTRODUCTION  1
1.1 The Nature and Practice of Factoring
1.2 Terms and Definitions
1.3 Common Misconceptions
 
 
Part One: The Relationship between Factoring and Finance
 
 
2 THE NEED FOR FINANCE AND A FINANCIAL POLICY  7
2.1 The Finance Function
2.2 The Need for Capital
2.3 Permanent Capita1
2.4 Working Capital
2.5 Expertise Available from the Factor
 
3 THE SCOPE OF FACTORING  18
3.1 The Importance of International Trade in the Development of
    Factoring
3.2 The American Experience  19
3.3 Development of Factoring in the United Kingdom  22
3.4 Application of Factoring  28
 
4 THE NEED FOR FACTORING  32
4.1 The Economic Function of Factoring
4.2 Comparison with Sources of Short-Term Finance
    Appendix to Chapter 4
 
 
Part Two: The Management of Working Capital
 
 
5 WORKING CAPITAL AND SOLVENCY  47
5.1 Basic Definitions and Component Parts of Working Capital
5.2 Solvency Ratios
5.3 Overtrading
 
6 CASH MANAGEMENT  56
6.1 Stocks and Flolys of Cash
6.2 The Cash Budget
6.3 Cash as a Limiting Factor
 
7 CREDIT CONTROL  62
7.1 The Need for a Credit Control Policy
7.2 Establishing an Integrated Credit Control Policy
7.3 Sources of Credit Information
7.4 Collection of Debts
 
 
Part Three: Factoring Exaniined
 
 
8 FACTORING-WHAT IT MEANS  81
8.1 Factoring Defined
8.2 Range of Services Offered
8.3 Administration between Client and Factor
8.4 The Value of the Factoring Service
 
9 ADMINISTRATIVE SERVICES COVERED  88
9.1 Credit Assessment and Protection against Bad Debts
9.2 Sales Ledger Control
9.3 Collection
9.4 Additional Services Offered
 
10 ESTABLISHING A FACTORING AGREEMENT  109
10.1 Recognizing the Need for Factoring
10.2 When is Factoring Appropriate: A Check List
10.3 Selecting the Appropriate Factor
10.4 Usual Steps in Establishing a Factoring Facility
10.5 Potential Disadvantages of Factoring
 
11 THE FACTORING AGREEMENT  119
11.1 The Nature of the Factoring Agreement
11.2 Normal Conditions
11.3 The Cost of Service
 
12 FACTORING AND INTERNATIONAL TRADE  126
12.1 Method of Operation
12.2 Cost
12.3 The Scope of International Factoring
 
 
Index  139