Factoring Versus short term Loan:
Factoring is not a short term loan. It is the contract of sale of total or some quantity of receivables at discount however short term loan might be the amount that is received on particular rate of interest. Sometime, net receivables might collateral security of secured short term loan.
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the claims are generally categorized into - equity (owner’s claim) and liabilities (claims of outsiders). further the liabilities are classified as either current or non-current.
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