explain how the factoring of receivables can be seen as collaterized borrowing – 10 seconds bonus: if you sell receivables (factoring) to pare down debt, what should you do as a good analyst?
reduce CFO, increase CFF, increase liabilities by the amount of the receivables and switch the back to A/R
you sell at a discount and the discount represents the interests add it back assets and equity
sounds like i was way off ;|
yeah i was talking about selling receivables with recourse what reading is this from?
getterdone Wrote: ------------------------------------------------------- > you sell at a discount and the discount represents > the interests > > add it back assets and equity Plus I think cash increase for the amount you save on the interest and taxes